Ottawa’s Thermal Energy lands $1.8M heat recovery contract

Thermal

Another contract with a Fortune 500 food and beverage company may help Thermal Energy International (TSX:TMG) bring some heat back to its recent stagnating revenues.

The Ottawa-based firm announced Thursday that it has landed a contract valued at $1.8 million to provide its heat recovery systems to an unnamed customer. This is the sixth heat recovery project Thermal Energy has installed for the client, in addition to converting more than 30 of its sites to the firm’s flagship steam-trap systems.

The partnership dates back to an initial agreement signed two years ago that has allowed the clean-tech firm to continue to find new project opportunities with the food and beverage leader.

“With this latest order and our products installed to date, doing business with Thermal Energy International is expected to provide this customer with estimated annual energy savings of $2.4 million, estimated annual water savings of 106.5 million litres valued at over $359 thousand, and estimated annual carbon emission reduction savings of 19 thousand tonnes,” said CEO Bill Crossland in a statement.

The contract is a boost to Thermal Energy’s otherwise flat financial performance as of late. Its most recent quarterly earnings saw virtually no year-over-year growth in the firm’s revenues, though sales of its heat recovery systems did see modest improvements.

A few months ago, Mr. Crossland pointed towards a strong order backlog of $8 million as reason to be optimistic about the coming close of the firm’s fiscal year.