Ottawa's Thermal Energy wins $770K contract with Canadian hospital

Thermal Energy

An Ottawa-based cleantech company has inked a deal to provide its energy-saving heat-recovery technology to a Canadian hospital.

Thermal Energy International (TSX-V:TMG) said this week it won a contract worth more than $770,000 to install its system, known as Flu-Ace, at the unnamed health-care facility.

“Health-care providers continue to come under increasing pressure to reduce fuel usage and operate more efficiently,” CEO William Crossland said in a statement.

“Now more than ever, hospitals are required to run 24 hours a day, seven days a week with no window for shutdown.”

Thermal Energy says its equipment is expected to save the hospital more than $380,000 a year in fuel costs and reduce the site’s carbon emissions by about 1,115 tonnes annually – the equivalent of taking 240 cars off the road.

'Growing global interest'

It’s the latest win in what Crossland said is shaping up to be a big year for Thermal Energy. He said orders are on pace to exceed last year’s totals as more customers look to cut carbon emissions and boost their profits.

“We continue to see growing global interest in a ‘build back better’ approach in all of our key markets,” Crossland said.

In its most recent financial statements, the Ottawa firm reported revenues of $2.8 million for the quarter ending Aug. 31, 2020, down from nearly $5 million a year earlier. Thermal Energy recorded a net loss of $218,000 in the period, the first quarter of its fiscal 2021 year, compared with a net profit of $241,000 the previous year. 

But the company sounded an upbeat tone, saying the $5.1 million worth of contracts it booked in the first quarter was 43 per cent higher than its order total from the same period in fiscal 2020.

“Now, with the easing of travel restrictions and sites reopening, with social distancing and other mitigation measures in place, we are seeing an influx of orders across all product categories,” Crossland said.