Power Solutions International Signs Mutually Exclusive Supply Agreement with Enchanted Rock
January 17, 2017 at 08:30 am EST
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Power Solutions International, Inc., and it’s subsidiary Professional Power Products, Inc. announced that it has signed a major multi-year supply agreement with the premier U.S. microgrid provider Enchanted Rock Ltd. (“ERock”). The agreement is valued at approximately $240 to $335 million over the first five years, subject to the attainment of certain targeted volume levels. 3Pi designs, manufactures, and sells custom-engineered, integrated electrical power generation systems for standby power, demand response, microgrid and cogeneration (CHP) markets. The new agreement expands the partnership between ERock and 3Pi, established by an earlier agreement signed in June of 2016. The mutually exclusive, multi-year agreement specifies that ERock will purchase an additional, approximate $30 million of the new microgrid genset units from 3Pi in 2017 with volumes increasing significantly in 2018, 2019 and 2020. PSI will exclusively supply the Heavy Duty 21.9L engine to ERock for reliability microgrid applications in North America. In addition to the original design, ERock and 3Pi intend to jointly develop specialized gensets for cold weather climates in North America, targeting reliability microgrid applications that provide protection against loss of utility power and electrical energy for grid sales. 3Pi/ERock design teams’ custom engineered the genset systems to optimize size, emissions, efficiency and durability, while reducing noise and lowering overall operating costs.
Power Solutions International, Inc. designs, engineers, manufactures, markets and sells a broad range of advanced, emission-certified engines and power systems that are powered by a wide variety of clean, alternative fuels, including natural gas, propane, and biofuels, as well as gasoline and diesel options, within the power systems, industrial and transportation end markets. The Companyâs products are primarily used by global original equipment manufacturers (OEMs) and end user customers. The Companyâs products include power systems, electric power generation (gensets), large custom genset enclosures, mobile and stationary gensets for: emergency standby, rental, prime power, demand response, microgrid, oil and gas, data center, renewable energy resiliency (wind, solar, storage), combined heat and power (CHP), industrial material handling, agricultural/arbor care, irrigation/pumps, construction, compressors, wood chippers, stump grinders, and sweepers/industrial scrubbers.