First royalty for Windflow

Struggling Christchurch turbine maker Windflow Technology has received its first royalty payment from the sale of a turbine it helped to develop.

Windflow’s United States-based licensee General Dynamics Satcom Technologies, a subsidiary of US defence and information technology giant General Dynamics, a Fortune 500 company, has sold a turbine it has developed with Windflow to a buyer in Texas.

A licensing agreement with GD Satcom signed in February last year provided for co-funded development of a new Class 2A turbine. Windflow has been working on the design for the new 500-kilowatt turbine with GD Satcom since March last year.

The new turbine is suited for the lower wind speeds typically found in North America. It has longer blades and is being promoted by GD Satcom as the GD45-500.

The new turbine is suitable for customers who need an alternative energy source in addition to a connection to a power grid.

Windflow retains ownership of the intellectual property behind the design, but GD Satcom has the licence to sell the turbines in North and South America, Africa, and US territories and military bases worldwide.

Windflow earns royalties from turbine sales by GD Satcom, and retains the rights for manufacture and sale of its turbine designs in Europe, Asia and Australasia.

‘‘We were very pleased to be selected by this customer in Texas,’’ chief executive Geoff Henderson said.

It was a bit of a ‘‘bonus’’ to have a customer for what was effectively the prototype of the new turbine, as GD Satcom had otherwise been prepared to build it ‘‘on their own nickel’’.

He would not say how much the royalty payment was.

Windflow shares closed flat at 23 cents yesterday.