Our On-Site combined heat and power Utility solution is a fully-funded model that unlocks the benefits of on-site generation – without the need for CapEx or commercial risk. We also install, operate and maintain the assets over the course of their lifetime.
EuroSIte Power announces completion of final Club Company installation
Press Release | 03/11/2021
EuroSite Power Inc., (OTCQX: EUSP) an On-Site Utility solutions provider, offering clean electricity, heat, hot water and cooling solutions to healthcare, hospitality, housing and leisure centers in the United Kingdom (UK) and Europe, has now completed installation of the final of five combined heat and power (CHP) systems contracted with the Club Company. The five sites are located across the UK and will add 390kW to the Companys fleet of generation assets.
The Club Company owns and operate 15 Country Clubs in the UK, combining a traditional golf environment with state-of-art health & fitness facilities, 5 of the clubs have on site accommodation ranging from 7 to 56 bedrooms. They have won several prestigious Flame Awards (at both club and operator level) which recognise high levels of service within the health and fitness industry. The clubs c. 40,000 members can benefit from a variety of facilities, including gym, group fitness studios, swimming pools, wet spa, crche, health and beauty, tennis, championship golf courses, bar, restaurant and lounges with free Wi-Fi.
Under the terms of EuroSite Powers innovative 15 year On-Site Utility agreement the Club Company will benefit from high efficiency CHP systems that will provide energy in the form of heat and electricity at five of their Country Clubs. This energy is provided at a guaranteed lower rate than if the facility were to buy directly from the utility. With the final system now installed The Club Company will be able to benefit from up to 5,517,486 kWh of their annual energy needs using these on-site systems, giving them an estimated annual energy cost savings over 78,000 (US$108,000), with no capital or maintenance costs.
Providing a lifetime revenue to EuroSite Power of approximately 5 (US$7) million, the contract brings EuroSite Power's portfolio of operational systems in the UK to 48 with a value to the company of 74.7 (US$103.85) million from units totalling 6,012kW electrical capacity.
Club Company Director Paul Stephens said, "EuroSite Powers team worked with us to identify the clubs where we could benefit from adopting their On-Site Utility solution. Like all businesses cash flow is a vital concern so, with zero upfront costs, and immediate, guaranteed, risk-free savings, the EuroSite Power solution makes perfect sense. Coupled with the experience of the EuroSite Power team it made it a simple decision to sign the deal. Their experience in the hospitality industry showed through in the way they were able to swiftly tailor a bespoke technical and financial solution to maximise our savings."
Paul Hamblyn, Chief Operating Officer of EuroSite Power, added, "Despite the challenges of the pandemic all systems within our project backlog have now been commissioned increasing our operational fleet to 48 units. This project was made possible by the desire of the Club Company team to control their energy costs and our ability to work with them to deliver a tailored On-site Utility solution. This project shows that, as we move towards net zero, CHP can still deliver attractive long term savings for end users through its improved efficiency."
On-Site Utility (OSU)
EuroSite Power sells the energy produced from an on-site energy system to an individual property as an alternative to the outright sale of energy equipment. On-Site Utility solution customers only pay for the electricity or total energy produced by the system and receive either a guaranteed discount rate on the price of total energy or a fixed price for electricity. All system capital, installation, system maintenance and support are paid by EuroSite Power, and in the case of No Risk On-Site Utility solution customers all system fuel costs are also paid by EuroSite Power.
COVID Trading Update
Press Release | 02/19/2021
EuroSite Power Inc. (OTCPK: EUSP, the "Company") an On-Site Utility solutions provider, offering clean electricity, heat, hot water and cooling solutions to healthcare, hospitality, housing and leisure centers in the United Kingdom (UK) and Europe, today provided a trading update including detail of how the ongoing global COVID pandemic is affecting its business.
"2020 was a challenging year for many businesses but in many respects, it showed the value of our recurring revenue business model" explained Paul Hamblyn, Chief Operating Officer and Managing Director. "Although government restrictions meant the closure of many of our customers sites these sites still needed energy and so we were able to keep generating, albeit at a reduced output throughout the year. We were also able to continue construction activities, so we also grew our fleet in 2020.
Chief Executive Officer, Dr Elias Samaras added While we will not be publishing our 2020 results until the end of March I can tell investors that revenue was damaged by the pandemic, but despite this the UK company maintained a positive EBITDA throughout the year and also made a profit in six months of the year. In addition, through careful management of cash we ended the year with more cash in the bank than we had when the UK first locked down in March.
With UK government restrictions being reimposed early in January most hotels and all indoor fitness studios, gyms, swimming pools, spas and other indoor leisure centers together with outdoor leisure activities such as golf were forced to close. As a result, the Company confirmed that 24 of its 46 generation assets are now switched off however, the impact to day-to-day energy generation is currently limited to a reduction of around 30% due to the larger generation capacity of those units still able to operate and the effect of the colder winter weather. Daily electricity generation is currently averaging close to 40,000 kWh although the Company expects this to reduce should the current restrictions continue into the warmer spring months.
New business development, particularly within the Companys traditional hospitality, sports and leisure sectors was severely affected by COVID. Many projects in the pre lockdown pipeline failed to materialise as expected but there are signs that activity is now beginning to remerge within these sectors. In response to this downturn management refocused sales effort both on new sectors and an expanded offer including funded solar PV solutions and high efficiency chillers. It also took the decision to reduce staffing in the sales team; staff numbers will be increased once more when restrictions are eased and new business activity levels increase. In the meantime, the UK directors are spearheading sales activity.
The Companys also reports that project backlog was substantially reduced over the past few months with new systems becoming operational at four Club Company sites, the Brentwood Centre and at the Ricoh Arena, Coventry. These new systems added 735kW capacity to the fleet, further increasing the recuring revenue potential for 2021.
Elsewhere the Company was also able to identify a range of energy and carbon savings projects as part of its CHP Management Contract with Coca-Cola HBC Northern Ireland. In time the Company expects to receive orders to implement the projects identified and is also working with its customer to extend the scope of its current contract to other sites across Europe and elsewhere.
Management took advantage of all available government support including flexibly furloughing some staff using the Coronavirus Job Retention Scheme while claiming various one-off business grants. The Company also opted to take a low interest 100,000 ($139,000) government backed loan, the first year of which incurs no interest with repayments beginning in November 2021.
The Company plans to announce its 2020 financial results later in March and will issue a press release confirming the exact date and time of this announcement in due course.
American DG Energy American DG Energy, now Tecogen Inc. (Nasdaq-TGEN $1.72) can be considered the parent of EuroSite Power. It was founded in 2001, and basically has the same strategy as EuroSite Power, except that it offers its services in the United States. After American DG Energy was in operation for a few years, it spotted an opportunity to implement its business model in Europe. It did so by founding EuroSite Power. Today, American DG Energy owns approximately 25.7% of EuroSite Power’s outstanding common stock and it provides management oversight to the Company. A number of EuroSite Power shareholders are also shareholders of American DG Energy. Additionally, American DG Energy continues to guarantee certain debt obligations of the Company. Finally, American DG Energy has a related company, Tecogen Inc., which is a major equipment supplier to both American DG Energy and EuroSite Power. Competition EuroSite Power competes with utilities that provide electricity, with companies that provide similar services, and with other forms of alternative energy. Companies that provide similar services include Siemens AG, Honeywell International Inc. and Johnson Controls Inc. Because of their overhead structures, these companies often solicit large, diverse projects rather than individual properties. Because EuroSite Power focusses on much smaller projects solely for energy supply, these giants, in most cases, are potential suppliers of equipment and not competitors.