TMG.V GOING TO A DOLLAR!! NEWS!!!
Thermal Energy Signs Letter of Intent for First THERMAL-AUD(TM) Energy Services Agreement with N. American Forest Products Company
Tuesday June 26, 6:30 am ET
Proposed initial five-year solution to provide customer approximately $2.5M in positive cash flow; cut greenhouse gas emissions by 50,000 tons of C02
OTTAWA, June 26 /CNW Telbec/ - Thermal Energy International Inc. (TSX-V: TMG - News; www.thermalenergy.com) is pleased to announce it has signed a letter of intent to enter into its first long-term energy services agreement with one of the largest North American forest products companies at one of its pulp and paper mills in Quebec.
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The proposed solution utilizes Thermal Energy's new THERMAL-AUD(TM) (Alternate Utility Delivery) program, which provides guaranteed energy savings using a FLU-ACE(R) waste heat recovery system. This would be a new application for FLU-ACE(R) on a particular pulp and paper process, which has a wide-spread, repeatable, application for the industry.
Under the proposal the customer would receive approximately $500,000 in positive cash flow annually or $2.5 million over the first five-year term, from its share of the total energy savings. Thermal Energy would receive regular payments throughout the term of the contract from the balance of the energy savings. The project would also reduce the customer's greenhouse gas emissions amounting to 10,000 tons of CO2 a year, by reducing its consumption of oil.
With the THERMAL-AUD(TM) program, Thermal Energy owns and operates the energy saving assets for the duration of the contract which typically runs for five years or more. TEI guarantees a significant portion of the energy savings to the customer commencing the first day of operation. The customer has an opportunity to renew the contract for a subsequent term or purchase the system for fair market value at that time.
"Thermal Energy has been hard at work for more than a year to develop the THERMAL-AUD(TM) energy services program and to position it with prospective clients," said President and CEO Tim Angus. "It is the ideal solution to help customers adopt our excellent energy saving technology such as FLU-ACE(R) and DRY-REX(TM) without the restrictions or difficult access to capital funding traditionally required to finance these initiatives."
Thermal-AUD(TM) reduces the risk to the customer, frees up capital funding for other purposes, requires little or no upfront customer expenditure and provides immediate, significant cash flow to the customer from the savings.
"Pending establishment of final terms and conditions, we expect to start work by Fall," said Mr. Angus.
About Thermal Energy
Thermal Energy International Inc. is an innovative technology company providing custom energy and emission reduction, and bioenergy solutions. Headquartered in Ottawa, Canada, TEI is a designer, design build developer, fabricator, owner, operator and supplier of proprietary and patented energy conservation, renewable energy and environmental technology solutions. Thermal Energy is a fully accredited professional engineering firm, and offers advanced process and applications engineering services. The Company is a proud member of the Chicago Climate Exchange (CCX). FLU-ACE(R), Dry-Rex(TM), THERMALONOx(TM) and THERMALOZOMAx(TM), THERMAL AUD(TM) are trademarks of Thermal Energy International. GEM(R) is a trademark used under exclusive license from Gardner Energy Management Ltd.
For more information about Thermal Energy International Inc. (TSX-V: TMG - News), visit our website at www.thermalenergy.com.
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For further information
Stuart McCarthy, Thermal Energy International Inc., Investor Relations and Communications, (613) 723-6776, x 220, stuart.mccarthy@thermalenergy.com
