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.
OBJ360 (Sponsored)
The value of an Algonquin College degree: Experiential learning, taught by industry experts
Zaahra Mehsen was three years into a biology degree at a local university when she realized she wanted to take a different path. “I realized that it’s not my thing,”
Investing in the next generation: Ottawa businesses encouraged to build futures through mentorship
Do you remember the mentor in your life who helped shape your career? In the business world, success often depends on the connections we build, fuelled by guidance and support
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.
