Thermal Energy signs agreement for Canadian government funding support for product development in the Chinese petrochemical market
OTTAWA, Feb. 7, 2013 /CNW/ - Thermal Energy International Inc. (TSX-V: TMG) ("Thermal Energy" or the "Company") is pleased to announced that it has signed a funding agreement with the Canadian government related to a previously announced offer of funding to support a product development project targeting the Chinese petrochemical market.
On February 8, 2012, Prime Minister Stephen Harper and Chinese Premier Wen Jiabao announced results of the third call for joint research and development projects under the Canada-China Framework Agreement for Cooperation on Science, Technology and Innovation. The bilateral R&D projects are jointly funded by ISTPCanada, a national organization mandated by the Government of Canada to develop and implement R&D collaboration programs under Science and Technology (S&T) cooperation agreements between Canada and key trade partners including China; and the Ministry of Science and Technology (MOST) of the People's Republic of China.
At that time Thermal Energy was pleased to announce that included in the list of projects receiving support, as announced by Prime Minister Harper and Premier Wen Jiabao, was a project it was developing with Cyheat Energy Technology Inc. ("Cyheat") and Liaoning Shihua University. The intent of this project is to develop a cost-effective waste heat recovery system for use in petrochemical re-heating furnaces. If successful this technology is expected to help refineries achieve greater energy efficiency, reduce emissions and save millions of dollars in fuel costs by reducing the refineries' fuel consumption by up to 15 percent and recovering up to 90 percent of the water vapor in the emissions for re-use.
The initial focus for the product is the Chinese market where more than 1,200 re-heating furnaces are in operation by the petrochemical industry, however if successful the technology is expected to have application globally and open up a significant new market for Thermal Energy.
"The petrochemical industry is a key strategic target for Thermal Energy and a significant energy consumer worldwide", said William Crossland, Chief Executive Officer of Thermal Energy. "Condensing heat recovery on a petrochemical re-heating furnace is a novel application of this technology and if successful, this project will open new doors for Thermal Energy as well as complement our existing FLU-ACE® heat recovery system and GEM® steam trap technologies already widely in use."
ISTP Canada has committed to cover 50% of Thermal Energy's eligible costs of the project to a maximum of approximately $244,000. The project is expected to be completed over the next two to three years. Thermal Energy and Cyheat will jointly share any technology developed as a result of this project.
About Thermal Energy
Thermal Energy International Inc. is an innovative cleantech company providing a variety of proprietary and proven energy efficiency and emission reduction products and solutions to energy intensive industrial, commercial and institutional fossil fuel users worldwide. Thermal Energy is also a fully accredited professional engineering firm, and can offer advanced process and applications engineering services. By providing a unique mix of proprietary products together with process, energy, environmental, and financial expertise Thermal Energy is able to deliver significant financial and environmental benefits to our customers.
Thermal Energy's products include; GEM® - Steam traps and condensate return systems, FLU-ACE® - Direct contact condensing heat recovery, and Dry RexTM - Low temperature biomass drying systems. These award winning products are effective in a wide variety of industries and application and have an excellent track record of longevity, proven reliability and performance providing significant energy savings, reduced GHG emissions, improved water efficiency, lower maintenance costs, improved product quality and increased production efficiency.
Thermal Energy International Inc. has offices in Ottawa, Canada as well as Bristol, UK, United States, Italy and China. To find out more about Thermal Energy International Inc. (TSX-V: TMG), visit our website at http://www.thermalenergy.com.
About Cyheat Energy Technology Inc.
Cyheat is a privately owned company that focuses on improving the thermal energy efficiency of the petrochemical industry. Cyheat has been in business for 8 years and has 17 full-time and 30 part-time employees including a number of Masters and Ph.D candidates with the Liaoning Shihua University. The management of team consists of Jerry Fang, MBA, Chairman and CEO, and Prof. Baoshan Li, Vice President and Chief Technology Officer. Mr. Fang is a Senior Engineer and also an Adjunct Professor of the International MBA program at Peking University's Guanghua School of Management. He has 22 years' experience in the field of petroleum and energy consumption efficiency. Prof. Li graduated from China University of Petroleum with a Masters of Thermal Engineering and has 25 years' of teaching and research experience in the field.
About Liaoning Shihua University
Liaoning Shihua University was founded in 1950 as Fushun Petroleum Institute. Today Liaoning Shihua University has 11 schools and colleges including the School of Petrochemical Technology. It is a modern multi-disciplinary university with a focus on petrochemistry as its distinctive feature. It is a state-owned, non-profit making institution of higher education and the first of its kind across China. To-date Liaoning Shihua University has graduated more than 40,000 students for China's petrochemical industry.
NOTE: This press release contains forward-looking statements relating to, and amongst other things, based on management's expectations, estimates and projections with respect to the anticipated receipt of funding approved by ISTP, results and timing of research, the anticipated effectiveness of the Company's products and services and the revenues to be received by the Company from the project described. These statements are not guarantees of future performance and involve a number of risks, uncertainties and assumptions. Many factors, some of which are outside of the Company's control, could cause events and results to differ materially from those stated. The Company disclaims any obligation to publicly update or revise any such statements.
International Science and Technology Partnerships Canada (ISTPCanada) facilitates the creation of global technology partnerships that open new markets and trade doors for Canadian companies. ISTPCanada develops and implements R&D collaboration programs under Science and Technology (S&T) cooperation agreements between Canada and three key trade partners: Brazil, China and India. Mandated by the Government of Canada through Foreign Affairs and International Trade Canada (DFAIT), ISTPCanada facilitates R&D cooperation between Canadian companies, research organizations and their counterparts in these countries; and invests in collaborative R&D projects. Since its inception in 2007, ISTPCanada has:
- Facilitated 50 bilateral or multilateral partnership development and match-making activities, engaging at least 4,000 highly qualified people, and leading to hundreds of S&T collaborations
- Invested more than $10 million in 29 bilateral R&D projects valued at almost $38 million; and
- Gained almost four-fold leverage on every dollar invested by the Government of Canada.
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