DUG Technology (ASX: DUG) has signed an exclusive DUG Cool licensing agreement with Baltimore Aircoil Company, Inc (BAC).
The agreement grants BAC an exclusive and worldwide licence to use DUG's patent rights and know-how regarding DUG Cool, the company’s immersion-cooling technology.
This licence includes the right to use, manufacture, market and sell the Licenced IP and will be used by BAC to manufacture and sell immersion cooling tanks.
BAC is the global leader in cooling solutions with over 80 years of experience serving the HVAC, Industrial, and Refrigeration industries. Since 1938, BAC has been creating innovative sustainable products and solutions for the most essential and demanding environments on earth.
By integrating DUG's technology, BAC expands its portfolio of evaporative, hybrid, and dry cooling products to now include indoor immersion cooling solutions to provide data centre customers with even more advanced options to meet their current and future cooling needs.
DUG will earn the following royalties until the patent expiry date in 2036:
- 2.5% of net sales of BAC’s immersion cooling tanks utilising DUG’s patent rights
- 2.5% of net sales of BAC’s immersion cooling tanks subject to DUG providing ongoing technical assistance to aid commercialisation.
A two-year trailing Know How royalty will be payable to DUG after the patent expiry date at the rate of 2% in year one and 1% in year two.
DUG will retain the ability to utilise the Licenced IP for DUG’s own use and for use in the Company’s DUG Nomad product suite.
"This new partnership between BAC and DUG is poised to revolutionise the data centre cooling market,” DUG's Managing Director, Matt Lamont, said.
“Our patented DUG Cool design has been refined through production use for over a decade. Our Skybox data centre in Houston is among the largest single-phase immersion cooling deployments in the world. This agreement will pair our design, know-how, and reputation with BAC's scale, manufacturing prowess, and respected brand to position us to take advantage of a shifting and rapidly expanding data centre cooling market. We very much look forward to working with BAC as part of this agreement.”
