- CETY Acquires GE Heat Recovery Solutions, restructures debt and Board of Directors who infuse cash, and partners with large BPL power efficiency systems provider
- New partnership with BPL, allows CETY to substantially increase revenues by selling BPL products and power installations to thousands of new potential locations
- CETY ORC generators were just discovered by property management in NY and being commissioned in the first of what could be large numbers of high rise buildings
- CETY has been quietly building a base to become a leader in the fast growing industry of Energy Efficiency as energy prices continue to increase and is now positioned to generate substantial revenues
- 58% of the world's power is lost to wasted heat
The Department of Energy tells us that “Combined Heat and Power (CHP) (utilizing recovered lost heat) represents a proven, effective, and underutilized near-term energy solution to help the United States enhance energy efficiency, improve environmental quality, promote economic growth, and maintain a robust energy infrastructure. The U.S. currently has an installed capacity of 82 GW of CHP, with 87 percent in manufacturing plants around the country. CHP, or cogeneration, has been around in one form or another for more than 100 years — it is a proven commercial technology. Despite rising energy costs and this track record, CHP remains underutilized in the U.S., even though it is one of the most compelling sources of efficient generation that could, with even modest investments, move the nation quickly toward greater energy security and a cleaner environment.”
The market for clean energy efficiency is large and as expected, there are many competitors offering solutions with their own brand of heat recovery systems. One of the larger and better-known companies in this space is Ormat Technologies, Inc. (NYSE: ORA) that delivers systems to generate electric power from geothermal energy and recovered energy. Ormat systems typically target the larger 25MW to over 100MW systems. Turboden is a subsidiary of Mitsubishi that delivers ORC (Organic Rankine Cycle) heat recovery systems ranging from 2.3MW to 16 MW with most sales in the larger multi-MW systems.
Clean Energy Technologies, Inc. (OTC: OTCPK:CETY) a lesser known, but highly promising contender with more efficient heat recovery systems than the competition is already generating early sales and could become a significant supplier to this large industry. In 2016, Clean Energy Technologies, Inc., announced, “Clean Energy Technologies, Inc. Delivering Low Cost, Emission Free Power with its Heat Recovery Solutions Clean Cycle™ Generator acquired from General Electric International, Inc.” This acquisition of Heat Recovery Solutions assets, patents & licenses from General Electric International, Inc. will help set CETY apart from the competition because it is a more efficient magnetic bearing, frictionless turbine technology as compared to the older lubricated screw systems that have been commonly used.
The DOE claims that there are over 290,000 CHP heat recovery systems in use in the United States today. They also claim that 220,000 of the 290,000 systems are for less than 500kW.
CETY Clean Cycle systems are 140kW and are right in the sweet spot of where industrial and commercial user’s needs are the highest.
Sales are early, but CETY Clean Cycle heat recovery systems have already been purchased by PHG Energy of Nashville, TN, Aries Clean Energy of Nashville, TN, Waste Biomass operation in Europe, Pacific Rim orders, 1540 Broadway high rise in Manhattan, NY, etc. CETY currently serves 88 biomass applications and 100 total installations with over 1,000,000 hours of operations all over the world.
CETY’s latest 10Q states, “Our growth strategy is to scale up our business by focusing on the significant installed base of power generation, high rise buildings, and biomass boiler systems ideally suited to ORC-based heat recovery systems, exploiting market segments and regions where there are significantly high electricity prices, and identifying and exploiting incentive markets as they are available. We sell equipment and complete heat recovery systems globally directly to end customers and also through distributors. We also commercialize our heat recovery systems through lease and energy-based programs where appropriate. We are also developing technology co-ventures with owners of compatible power generation technology to develop integrated energy production systems to exploit additional potential customers.”
Financials reveal an increasing cash flow, but a negative current ratio suggesting a need for increased sales or additional capital so that the company can have the resources to grow sales quicker. It appears that new sales or additional capital can be a catalyst to significant growth.
CETY is currently undercapitalized, but that is changing with CETY’s experienced new Board of Directors and their funding efforts along with some large orders that appear underway with BPL and high rise users, or an outright acquisition that is very possible as CETY is sitting on very attractive products, patents and licenses. Investors considering any of these opportunities in the heat recovery space should perform their own due diligence to assess risk and upside potential.
Ormat and Mitsubishi are large and well financed company's with less risk, but with also less upside potential. CETY may have more risk, but with a limited small investment at under $.02 per share, investors certainly have much larger upside potential if the company continues to successfully execute sales. Rising energy prices and hundreds of thousands of large factories and high-rise buildings that can benefit substantially from CETY’s products that range from $250,000 per unit to several million for large biomass systems position CETY for very large growth potential from now and ongoing for many years.
CETYannounced that it has secured an initial $260,000 order for its Clean Cycle II Heat Recovery Solutions (HRS) Organic Rankine Cycle (ORC) Generator with Smart Source Energy for integration with Smart Source Energy's Combined Heat to Power (CHP) system for the high-rise in NY, 1540 Broadway.
The 1540 building on Broadway has elected to Go Green with a 1560 Kilowatt CHP system from Smart Source Energy. The system is designed to provide continuous power for the building while also reducing the buildings carbon footprint by utilizing the waste heat to heat the building in the cooler months. The building also elected to install state of the art high efficiency condensing boilers to heat the building in conjunction with the CHP. The CHPs waste heat will also be utilized in the warmer months by using it to create an additional 140 KW of capacity using CETY's state of the art Heat Recovery Solutions ORC Generator. CETY's HRS Generator creates additional electricity, and is powered by the CHPs waste heat, reducing the emissions profile while efficiently using the energy in the waste heat stream.
CHP cogeneration applications can be implemented in a wide range, from very small to large installations. CHP cogeneration can both provide heat, and serve chillers for cooling applications. Customers can utilize the electrical and thermal energy in various configurations. Some of the examples include office buildings, hospitals, waste water treatment plants, apartment & condominium complexes, and many more.
"We have been targeting the CHP vertical market as part of our expansion strategy in the domestic markets, and this is just the first in what we expect will be many integrations of our HRS system into CHP applications. CHP remains an underutilized resource in the US today and we are excited to begin applying our unique technology to the CHP market sector. The strategic relationship that we have formed with Smart Source Energy will result in product offerings that will significantly increase industrial efficiency and decrease unnecessary fuel consumption. CHP already has a large presence in the U.S., with approximately 4,300 installations in all 50 states and approximately 130 GW of remaining technical potential for electricity generation. CHP is also recognized for its potential to significantly reduce carbon emissions and to reliably generate power, even during emergency situations," said Kam Mahdi, CEO of CETY.
About Clean Energy Technologies, Inc. (OTCPK:CETY)
Clean Energy Technologies, Inc. designs, builds, and markets clean energy products focused on energy efficiency and environmental sustainability technologies. The Company's principal product is the Clean CycleTM heat recovery generator (HRG), offered by CETY's Clean Energy HRS, or Heat Recovery Solutions, subsidiary, www.heatrecoverysolutions.com. The Clean Cycle™ system captures waste heat from a variety of sources and turns it into electricity that can be used or sold back to the grid. CETY's proven, reliable technology allows municipal, commercial, and industrial users with heat sources, such as from industrial processes or energy production, to boost their overall energy efficiency with no additional fuel, no pollutants, and little ongoing maintenance. CETY's engineering and manufacturing resources support the Heat Recovery Solutions business, as well as CETY's other technologies. Headquartered in Costa Mesa, California, CETY's common stock is currently traded on the OTC Market under the symbol CETY. For more information, visit www.cetyinc.com or www.heatrecoverysolutions.com.