Thermal Energy Receives $4 Million Turn-Key Heat Recovery Order from Big Pharma Under New Global Master Services Agreement
Two additional project development agreements underway with multinational pharmaceutical company
Ottawa, Ontario--(Newsfile Corp. - September 13, 2023) - Thermal Energy International Inc. (TSXV: TMG) (OTCQB: TMGEF) ("Thermal Energy" or the "Company"), a provider of innovative energy efficiency and carbon emission reduction solutions to major corporations around the world, has received an order for a Turn-key Heat Recovery Project valued at approximately $4 million from a leading multinational pharmaceutical company. All figures are shown in CAD.
"This is our largest heat recovery order since before the pandemic and our first turn-key heat recovery order from a pharmaceutical company," said William Crossland, CEO of Thermal Energy. "Importantly, this customer has about 40 sites of interest around the world. We recently signed a Master Services Agreement and have two other paid project development agreements active with them."
"Following our prior success selling other products to pharmaceutical companies, we see significant cross-selling opportunities and are making a strategic push with heat recovery into this sector. Our proven solutions are a perfect fit for this sector due to the prevalence of low-grade heat use, the sector's commitment to GHG reductions, and their financial wherewithal facilitating positive carbon reduction action."
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This turn-key heat recovery project is designed to deliver Natural Gas savings at the boiler plant. The expected reduction in Natural Gas consumption would reduce CO2 emissions by 1,280 tons per year, representing a 13.5% reduction in site thermal CO2 emissions. Based on the client's expected Natural Gas prices, the project is expected to deliver approximately $1 million in annual fuel savings, resulting in a payback for a turn-key implementation in 4.1 years before application of any available utility and/or government funding/tax credits.
This project is key to this customer meeting looming 2030 emission reduction commitments as economically as possible and paves the way to ultimately meeting longer term carbon neutrality goals.
The project is expected to be completed and revenue earned within 12 months.
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Notes to editors
About Thermal Energy International Inc.
Thermal Energy International Inc. provides energy efficiency and emissions reduction solutions to Fortune 500 and other large multinational companies. We save our customers money by reducing their fuel use and cutting their carbon emissions. Thermal Energy's proprietary and proven solutions can recover up to 80% of energy lost in typical boiler plant and steam system operations while delivering a high return on investment with a short, compelling payback.
Thermal Energy is a fully accredited professional engineering firm with engineering offices in Ottawa, Canada, Pittsburgh, USA, as well as Bristol, UK, with sales offices in Canada, UK, USA, Germany, Poland, and Italy. By providing a unique mix of proprietary products together with process, energy, and environmental engineering expertise, Thermal Energy can deliver unique, site-specific turnkey and custom engineered solutions with significant financial and environmental benefits for our customers.
Thermal Energy's common shares are traded on the TSX Venture Exchange (TSX-V) under the symbol TMG and on the OTCQB under the symbol TMGEF. For more information, visit our investor website at https://investors-thermalenergy.com or company website at www.thermalenergy.com and follow us on Twitter at https://twitter.com/GoThermalEnergy.
This press release contains forward-looking statements relating to, and amongst other things, based on management's expectations, estimates, and projections, the anticipated effectiveness of the Company's products and services, the timing of revenues to be received by the Company, the anticipated effects of COVID-19 on the business, backlog, and revenue, and the expectation that orders in backlog will become revenue.
Information as to the amount of heat recovered, energy savings, and payback period associated with Thermal Energy International's products are based on the Company's own testing and average customer results to date. Statements relating to the order-intake, expected installation and revenue recognition for projects, statements about the anticipated effectiveness and lifespan of the Company's products, statements about the expected environmental effects and cost savings associated with the Company's products, and statements about the Company's ability to cross-sell its products and sell to more sites are forward-looking statements. These statements are not guarantees of future performance and involve several risks, uncertainties, and assumptions. Orders received in a fiscal year may not become revenue for the Company within such fiscal year. Many factors, some of which are outside of the Company's control, could cause events and results to differ materially from those stated. Fulfilment of orders, installation of products, and activation of products could all be delayed for several reasons, some of which are outside of the Company's control, which would result in anticipated revenues from such projects being delayed or in the most serious cases eliminated. Actions taken by the Company's customers and factors inherent in the customer's facilities but not anticipated by the Company can have a negative impact on the expected effectiveness and lifespan of the Company's products and on the expected environmental effects and cost savings expected from the Company's products. Any customer's willingness to purchase additional products from the Company and whether orders in the Company's backlog as described above will turn into revenue is dependent on many factors, some of which are outside of the Company's control, including but not limited to the customer's perceived needs and the continuing financial viability of the customer. The Company disclaims any obligation to publicly update or revise any such statements except as required by law. Readers are referred to the risk factors associated with the Company's business as described in the Company's most recent Management's Discussion and Analysis available at www.SEDAR.com.
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