Duos Technologies Expands Capacity with New $42M Agreement

Duos Technologies Group Inks Asset Management Agreement

Duos Technologies Group, Inc. (NASDAQ: DUOT) has announced a pivotal $42 million agreement aimed at enhancing its energy generation capabilities. This landmark agreement was signed with affiliates of Fortress Investment Group, permitting Duos to manage and deploy a collection of mobile gas turbines and other necessary equipment, which together hold a substantial total generation capacity of 850 megawatts.

Overview of the Asset Management Agreement

This new Asset Management Agreement (AMA) is a strategic move for Duos Energy Corporation, a subsidiary of Duos Technologies. The AMA will span two years and enable Duos to not only oversee the management of the assets but also facilitate their deployment to various immediate-demand power projects. This includes partnerships with developers of key power infrastructural projects in the U.S. and internationally.

Strategic Partnership with Fortress

Chuck Ferry, the CEO of Duos Technologies Group, expressed his enthusiasm regarding the collaboration with Fortress, emphasizing the importance of this agreement in diversifying Duos's operations. As global demand for energy continues to rise, this partnership positions Duos at the forefront of the power generation sector, particularly focusing on immediate availability of high-capacity solutions.

Benefits of Mobile Gas Turbines

Mobile gas turbines offer significant advantages for various clients, especially those in urgent need of Behind-the-Meter (BTM) power solutions. Unlike traditional sources, which may take up to 24 months to deploy, mobile turbines can be operational within weeks, fulfilling urgent energy requirements efficiently.

Plans for Future Growth

With the financial impact of the agreement estimated at $42 million over the duration, Duos is poised for growth. The company plans to utilize the new assets to aid in its goal of achieving profitability by the fiscal year 2025. Duos Energy Corporation has been established specifically to meet the heightened demand for power in sectors such as data centers which require reliable energy solutions.

Leadership and Experience

Under the guidance of CEO Chuck Ferry, Duos has brought together a senior leadership team that boasts over 100 years of collective experience in power project management. This experienced team has a proven track record of installing and operating over 1 gigawatt (GW) of fast-track power generation from 2016 to 2020 globally.

Market Conditions and Opportunities

With increasing grid constraints and growing energy demands, the strategic advantages offered by the mobile gas turbine assets are expected to provide immediate solutions in various markets. Robert Warden, the Managing Director at Fortress, highlighted that these assets would serve as an optimal choice for clients needing on-demand power generation.

Completion of Transaction

The transaction between Fortress and APR Energy, which involves the assets in question, is pending the fulfillment of typical closing conditions and necessary regulatory approvals. This bilateral commitment is anticipated to bring solutions to urgent energy needs, allowing Duos to leverage its expertise in the marketplace.

About Duos Energy Corporation

Duos Energy Corporation is dedicated to developing sustainable energy projects that cater to Edge Data Centers and critical infrastructure facilities across the nation. The company specializes in environmentally friendly energy solutions, employing clean-burning natural gas technologies to provide reliable off-grid power options quickly.

About Fortress Investment Group

Founded in 1998, Fortress Investment Group has established itself as a prominent global investment manager with a diverse portfolio managing over $48 billion in assets. The extensive range of services offered spans credit and real estate, private equity, and investment strategies, catering to a robust client base.

About Duos Technologies Group, Inc.

Based in Jacksonville, Florida, Duos Technologies Group (NASDAQ: DUOT) is recognized for its innovative technology solutions involving machine vision and AI applications. The company continues to impact various sectors, leveraging its technology for real-time analysis of fast-moving assets and energy solutions.

Frequently Asked Questions

What is the significance of the Asset Management Agreement?

This agreement allows Duos Technologies to manage a fleet of mobile gas turbines, enhancing its energy generation capabilities significantly.

How will this agreement benefit Duos financially?

The agreement is valued at $42 million over two years, contributing to Duos's goal of achieving profitability by FY2025.

Why are mobile gas turbines advantageous?

They can be deployed quickly, often within weeks, making them ideal for urgent energy needs compared to traditional energy sources.

What role does Fortress Investment Group play in this agreement?

Fortress has partnered with Duos to acquire and manage the fleet of mobile gas turbines, leveraging their investment expertise to support the deployment of these assets.

What is the primary focus of Duos Energy Corporation?

Duos Energy Corporation focuses on developing and operating sustainable energy solutions, particularly for sectors requiring reliable and rapid power generation.

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