Ottawa's Thermal Energy inks $920K deal with European food and beverage company

Thermal Energy

An Ottawa-based cleantech company has landed a deal to provide its energy-saving technology to a major European customer.

Thermal Energy International (TSX-V:TMG) said Tuesday it has inked a $920,000 contract with “one of Europe’s largest food and drink groups” for its heat recovery technology, known as Flu-Ace, that’s designed to help reduce customers’ energy bills.

The company said the system will be installed at a canning and packaging facility in the United Kingdom. The unit will capture gases from boiler exhausts as well as waste energy from heating systems and use it to heat water for steam and preheat water for cooking, canning and sterilization.

Thermal Energy says the system is expected to save its unnamed customer more than $380,000 a year in fuel costs and reduce the site’s carbon emissions by 2,868 tonnes annually. The project is expected to be completed within nine months.

It’s the latest customer win for Thermal Energy, which 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.

In its most recent financial statement, the Ottawa firm reported revenues of $5.8 million for the three-month period ending Feb. 29, up 87 per cent from a year earlier. Thermal Energy booked a net profit of $430,000 in the third quarter, a significant turnaround from an $889,000 loss in the same period in 2019.

The company’s shares were unchanged at eight cents in mid-afternoon trading on the TSX Venture Exchange.