MagneGas Corp., the producer of a metalworking fuel and natural gas alternative, reports significant progress in what it calls it “China initiative.” The company’s Beijing-based partner DDI Industry Intl. has advanced $950,000 toward its agreed $1.9 million purchase of a refinery for producing a refinery system for the alternative fuel refinery.

MagneGas owns a patent on a process called Plasma Arc Flow^TM which gasifies liquid waste to create a fuel that it calls “clean burning” fuel for metal cutting, cooking, heating, or powering bi-fuel automobiles. The company says its fuel product is “essentially interchangeable with natural gas,” with lower levels of GHG emissions.

In December, MagneGas granted to DDI an exclusive option to purchase equipment for the Plasma Arc Flow technology, plus China market distribution and manufacturing rights.

DDI now has signed a letter of intent to acquire the MagneGas^TM technology and manufacturing rights for the Greater China market, in exchange for a direct investment of $2 million in MagneGas Corp.

A new China-based joint venture ("MagneGas China") will be established to hold and administer the rights. DDI aims to make a public offering of MagneGas China in the future, granting a 20% stake to MagneGas Corp.

"We have now booked real revenue, established concrete precedent for additional equipment sales, planted a solid footprint in China and leapt closer to a business-changing equity investment," stated MagneGas President Richard Connelly. "From a macro perspective we believe our recent achievements have taken MagneGas from a great idea to a budding practical success. This purchase order and pending LOI elevate MagneGas to a different plane - to a clean tech story converting promise to dollars."