Vivakor Inks 10 Year Agreement with Hot Oil Transport
Apr 27, 2022 By MarketDepth
Vivakor, Inc. (NASDAQ: VIVK) today announced that it has signed a 10-year contract with Hot Oil Transport, LLC (“HOT”).
Vivakor will now provide HOT with up to 50,000 tons of ratable asphalt cement from Vivakor’s Vernal, Utah, facility upon completion of anticipated scaled up operations, annually for a period of ten years. Subsequently, HOT, a supplier of asphalt materials,will in turn supply Southwest Liquid Asphalt & Emulsions (“SLA”), a major supplier of polymerized asphalt in Southern Nevada.
“As this is our first long-term contract for sale of our asphaltic binder, it is an important milestone for Vivakor. We have worked closely with HOT to refine our product to meet their specifications. This could be a significant event for shareholders as this project, when fully scaled, could contribute meaningful profits.”Matt Nicosia, CEO of Vivakor
The agreement has a potential value of up to $250 million over 10 years, should Vivakor be able to ramp up and operate its Vernal, Utah site at full capacity.
“Demand for asphaltic binder has been increasing as a direct result of new governmental infrastructure spending and general supply constraints. This long-term contract for Vivakor’s asphaltic binder will help meet this increased demand and thus give us an added benefit of asphaltic binder that is reclaimed from waste and produced in an environmentally conscious manner.”Gene Chrisenbery, Manager of HOT