NXT Energy solutions, the Calgary-based energy tech company, announced this Monday it has acquired the rights of the geothermal SFD technology. SFD technology was in fact developed and invented by George Liszicasz, President and CEO of NXT.
Firstly, Mr. Liszicasz and NXT’s Board of Directors signed the agreement. Geothermal applications of the SFD tech include naturally occurring sub-surface fluid reservoirs; also, rock conditions from which heat can be extracted and utilized for generating electric power; or for direct utilization in industrial, agricultural or domestic applications.
Secondly, the SFD technology has a correlation with upstream activities; the main subsurface properties such as porosity, permeability and impermeable cap rock that are vital in the search for oil and gas, are also critical for locating geothermal resources.
Therefore, NXT Board of Directors concluded that the acquisition was well timed and applicable.
In fact, the SFD technology was first commercialized for hydrocarbons use. It is a non-intrusive airborne technology that enables improved drilling rates; and also reduced environmental impact, by minimalizing disruptions to community life and surface use.
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NXT Energy to expand its clean energy solutions through the geothermal uses of SFD tech
Moreover, in 2020, NXT Energy received confirmation of a patent granted from the European Patent Office; bringing the total number of countries granting the patent internationally to 44. Specifically for the geothermal applications of the SFD tech, NXT will apply for patent protection once the development hits significant milestones.
On the other hand, the geothermal uses of the technology acquired settled some conditions; such as a signature payment of US$40,000 and 300,000 common shares in the equity of the company; also, a $20,000 payment to be made when the Company’s cash balance is over CAD$5,000,000.
Consequently, when the acquisition process is over, Mr. Liszicasz will hold approximately a total of 15,337,234 (23.7%) of NXT Energy’s 64,814,921 outstanding Common Shares.
Finally, the NXT Board noted: “As industries worldwide transition toward a low-carbon economy, geothermal energy has gained greater prominence for its environmental benefits as a non-intermittent renewable energy source.”
It also remarked. “NXT takes great pleasure in announcing this agreement, and looks forward to leveraging its extensive research and marketing skillset acquired in hydrocarbon resources to develop and commercialize the Geothermal Resource application of the SFD technology.”