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.