OTTAWA, April 15, 2013 /CNW/ - Thermal Energy International Inc. (TSXV:
TMG) ("Thermal Energy" or the "Company"), a leading provider of custom
energy efficiency and emission reduction technologies to energy
intensive industries and institutions worldwide, today announced it has
completed the sale of a heat recovery system and GEM® steam trap system installed at a major publicly owned hospital for
approximately $1.4 million.
As previously announced, in April 2012 the Company received an order
from a publicly owned hospital for the supply, installation and
maintenance of a heat recovery system in exchange for quarterly
payments from the hospital totalling approximately $1.5 million over
seven years. Then in August 2012, the Company received an additional
order from the same hospital for the supply, installation and
maintenance of a GEM® steam trap system for approximately $548,000 over seven years. With the
installation of these two systems now complete, Thermal Energy has sold
the heat recovery and GEM® steam trap systems to an independent financing company for
approximately $1.4 million. Thermal Energy retained approximately
$550,000 of the quarterly payments over seven years for the service and
maintenance of the two systems. These two systems are the first Thermal
Energy has completed under a new service, maintenance and financing
program the Company is developing for its customers.
"As evidenced by these first two successful projects, the new service,
maintenance, and financing program that we are developing provides
enhanced value to our customers while at the same time growing our
current and recurring revenue and profit. Going forward, we intend to
offer this program to all of our public sector and select private
sector clients," said William Crossland, President and CEO of Thermal
Energy. "We continue to increase our sales and distribution
capabilities in our key markets and we are confident that this new
service, maintenance and financing program will further enhance our
growth strategy."
The $1.4 million for the sale of the heat recovery and GEM® steam trap systems will be recorded as revenue in the Company's
financial quarter ending February 28, 2013 as this is when the
installation was completed and revenue earned. The $550,000 for service
and maintenance will be recorded as revenue over the next seven years
as the service and maintenance is performed.
The heat recovery and GEM® steam trap systems installed at the hospital are calculated by Thermal
Energy to reduce carbon emissions by approximately 3,520 tonnes
annually and reduce the hospital's energy consumption by approximately
$750,000 annually.
About Thermal Energy International Inc.
Thermal Energy International Inc. is an innovative cleantech company
providing a variety of proprietary and proven energy efficiency,
emission reduction, water efficiency, and bioenergy products and
solutions to the industrial, commercial and institutional markets
worldwide. Thermal Energy is also a fully accredited professional
engineering firm, and can offer advanced process and applications
engineering services. By providing a unique mix of proprietary products
together with process, energy, environmental, and financial expertise
Thermal Energy is able to deliver significant financial and
environmental benefits to its customers.
Thermal Energy's products include; GEM® - Steam traps and condensate return systems, FLU-ACE® - Direct contact condensing heat recovery, and Dry RexTM- Low temperature biomass drying systems. These award winning products
are effective in a wide variety of industries and application and have
an excellent track record of longevity, proven reliability and
performance providing significant energy savings, reduced GHG
emissions, improved water efficiency, lower maintenance costs, improved
product quality and increased production efficiency.
Thermal Energy International Inc. has offices in Ottawa, Canada as well
as Bristol, UK, United States, Italy and China. To find out more about
Thermal Energy International Inc. (TSX-V: TMG), visit our website at http://www.thermalenergy.com.
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 and the timing of revenues to be received by the Company.
These statements are not guarantees of future performance and involve a
number of risks, uncertainties and assumptions. Many factors, some of
which are outside of the Company's control, could cause events and
results to differ materially from those stated. The Company disclaims
any obligation to publicly update or revise any such statements.
Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
SOURCE: Thermal Energy International Inc.
