Coming off record fiscal year, Ottawa's Thermal Energy books $1.5M hospital contract

Thermal Energy

A fast-growing Ottawa cleantech company has landed another significant contract for its energy-saving system, this time with a major health-care organization.

Thermal Energy International (TSX-V:TMG) said this week it’s signed a $1.53-million deal with an unnamed hospital group to supply its heat-recovery technology, known as Flu-Ace, at two facilities managed by the health-care provider.

The company said the projects include a newly designed system for one hospital and an extension of an existing system previously installed by Thermal Energy at a second hospital.

Thermal Energy says the system is expected to save its customer more than $400,000 a year in fuel costs and reduce the hospitals’ carbon emissions by 2,300 tonnes a year. 

It’s the second big contract win this month for Thermal Energy, which inked a deal worth $840,000 with a multinational food products company in early October that’s expected to deliver energy savings of more than $300,000 annually. 

The firm said earlier this year it planned to step up its R&D efforts and launch new employee training programs in an effort to make itself more competitive in a post-COVID world. Thermal Energy recently cracked the Globe and Mail’s list of Canada’s 400 top-growing companies in 2020, with three-year revenue growth of 70 per cent.

The Ottawa company is also coming off a fiscal year in which it reported record revenues of $21.4 million, up two per cent from a year earlier.

Although the firm’s fourth-quarter revenues took a hit due to the COVID-19 pandemic, CEO William Crossland said the company ​– which relies on detailed site surveys and facility visits to tailor its products to customers’ needs ​– is in good shape to bounce back quickly once measures aimed at curbing the spread of the virus are eased.

In a recent statement, Crossland said the firm has booked $5.7 million worth of new orders since its current fiscal year began on June 1, a “significantly better” total than at the same point in the previous two years.

“As we enter the next financial year, we have a clear roadmap forward,” he said. “With year-end cash balances of $4.8 million and working capital of $2.9 million, each of which represent the highest year-end levels in over 10 years, we are strategically positioned to emerge from this challenging period in a strong position.”

The company’s shares were up half a cent to eight cents in final trading Wednesday on the TSX Venture Exchange.