- Thermal Energy International (TSXV:TMG), a cleantech stock focused on energy efficiency and emissions reduction, has signed a C$500,000 contract with one of the world’s largest multinational pharmaceutical companies
- The contract represents the largest engineering services project in Thermal Energy’s history
- Thermal Energy International supplies energy efficiency and emissions reduction solutions to Fortune 500 and other large multinational companies
- Thermal Energy stock has given back 51.67 per cent year-over-year and has gained only 11.54 per cent since 2020
Thermal Energy International (TSXV:TMG), a cleantech stock focused on energy efficiency and emissions reduction, has signed a C$500,000 contract with one of the world’s largest multinational pharmaceutical companies.
The contract, the largest engineering services project in the company’s history, will see it contribute towards a planned heat-recovery project at a client site.
The news follows orders for three major heat-recovery projects from a separate pharmaceutical company, providing market validation to expand Thermal Energy International’s client roster in the space.
The company has shown investors that it can generate revenue growth in line with increasing profitability, despite headwinds from COVID-19 and ensuing inflation, earning it conviction for continuing to ride the global energy transition towards greater market share and shareholder value.
Leadership insights
“We are excited to have received such a significant engineering order from another world-leading pharmaceutical company,” William Crossland, Thermal Energy International’s chief executive officer, said in a statement. “The engineering to be done under this contract is much more extensive than the level we would provide under one of our project development agreements or PDAs. In fact, we signed a PDA with this company approximately a year ago and based on the outcome of the PDA the client has retained us to complete the full detailed engineering for the project. Typically, customers prefer the detailed engineering to be part of a total turn-key fixed-priced project agreement, but in this case the customer’s preference is to approve the project in stages. This is also a lower-risk option for Thermal Energy because firm pricing will not be provided until the detailed engineering is completed.”
“Like many of its peers, this customer has significant carbon emission reduction targets and is aligned with the United Nation’s Race to Zero campaign, which is a global campaign rallying non-state actors – including companies – to take the necessary actions to halve global emissions by 2030.”
“Our proven solutions align perfectly with multinational pharmaceutical companies with their extensive use of low-grade heat, strong and public commitments to reducing greenhouse gas emissions, and financial capacity to drive meaningful carbon reduction initiatives. Thermal Energy has helped several well-known pharmaceutical companies in North America and Europe reduce their energy costs and carbon dioxide emissions with GEM steam traps and HeatSponge boiler economizers. Yet, other than the three multi-million-dollar heat recovery projects we announced previously with a different multinational pharmaceutical company, this sector remains mostly untapped in terms of larger-scale heat recovery opportunities.”
About Thermal Energy International
Thermal Energy International supplies energy efficiency and emissions reduction solutions to Fortune 500 and other large multinational companies. The company’s portfolio is highlighted by proprietary and proven technology that can recover up to 80 per cent of energy lost in typical boiler plant and steam system operations.
Thermal Energy stock (TSXV:TMG) is up by 3.54 per cent trading at C$0.14 per share as of 9:31 am ET. The stock has given back 51.67 per cent year-over-year and has gained only 11.54 per cent since 2020.
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(Top photo of Thermal Energy International’s Flu-Ace heat recovery system in action at a European chemical plant: Thermal Energy International)
