MONTREAL, Feb. 2 /CNW Telbec/ - Sofame Technologies Inc. (TSX-V: SDW), a
leading manufacturer of innovative commercial-industrial heat recovery
equipment and environmental solutions, is proceeding with plans to create
equipment finance divisions in the United States and Canada. A Carbon division
is also being created to pursue certification of investment grade carbon
credits to assist Sofame's customers to maximize the financial benefits of
purchasing Sofame's energy efficiency technology.
John Gocek, President and CEO of Sofame stated, "Sofame has been
participating in the green revolution for over twenty years. With a proven
track record of technical achievements in industrial energy efficiency, an
ability to finance our customers' green investments, and expertise in
monetizing carbon savings and NOX reductions, Sofame is uniquely positioned to
grow in the new green economy."
The two new businesses will be complimentary to the Sofame's core
engineering and equipment manufacturing activities and should assist in
reducing the long sales cycle and improving the customers' return on
Equipment Finance Division: a Source of Repetitive Revenue for the
Some of Sofame's institutional and industrial customers have recently
begun to indicate that availability of vendor financing would crystallize
their resolve to invest the capital required to achieve fuel savings and
reduce green house gas emissions. This interest led Sofame to proceed with two
separate subsidiaries, one in the United States, and the other in Canada. In
both cases, Sofame is seeking third party financing, and plans to share the
energy savings achieved over time with end-users.
Sofame announced a plan to seek investors for the proposed financing arm
in April 2008 while presenting at the Cleantech show in Brussels, Belgium.
This energy savings company model would result in recurring revenues for
Sofame over many years in addition to the initial revenue from the sale of
Carbon Credit Division to Monetize NOX Reductions and Carbon Offsets
The Sofame Carbon subsidiary would operate on a similar principle of
recurring revenue by cooperating with end-users to document and harvest
certified carbon credits over many years while sharing the gains with Sofame
customers. Sofame would become an aggregator of relatively small amounts of
carbon. Over time Sofame plans to bring them to market as the annual pool of
carbon credits grows with each passing year, and the sale of more Sofame
energy efficiency equipment continues to generate additional annual GHG
Sofame plans to enter into specific mandates with industry leading firms
who are highly qualified advisors in the field of climate change. The
resulting business plan will take into account actual opportunities to
monetize NOX reductions and carbon offset credits, then build on the widely
anticipated sweeping changes in climate change legislation expected in the
United States and Canada.
With over 300 systems installed to date, Sofame has helped cut GHG
emissions by 150,000 tons a year. Over the past 20 years, Sofame technology
has enabled industry to cut its emissions by 1.8 million tons - the equivalent
of taking 300,000 cars off the road for one year.
Climate Change Legislation, Energy Efficiency Standards, Infrastructure
Spending Expected Under Obama and Harper Green Plans
United States: Obama Green Plan
Currently, the US federal government is the world's largest single
consumer of energy in the world, spending approximately $14.5 billion on
energy consumption in FY 2008. Barack Obama and Joe Biden believe in the
importance of leading by example. They will make the federal government a
leader in the green building market, achieving a 40 percent increase in
efficiency in all new federal buildings within five years and ensuring that
all new federal buildings are zero emissions by 2025. They will invest in
cost-effective retrofits to achieve a 25 percent increase in efficiency of
existing federal buildings within 5 years. The Obama-Biden plan will put
forward the resources necessary to achieve a 15 percent reduction in federal
energy consumption by 2015.
Canada: Harper Green Plan
A $1 billion Clean Energy Fund has been created to generate more than
$2.5 billion in investments in clean energy research and projects. From this
Fund, $150 million over five years will go towards research and $850 million
over five years will go towards the development and demonstration of clean
energy technologies. Another $1 billion investment has been made into a Green
Infrastructure Fund that will support the development of sustainable energy
SOFAME Technologies Inc. custom engineers and manufactures unique,
high-efficiency direct-contact heat recovery and hot water heating systems.
Sofame's products extract up to 99% of heat from flue gases depending on the
application, and also from wastewater, and return the energy in the form of
high temperature hot water or pre-heated make-up air. In addition to
economically recovering heat from waste energy, Sofame's products also help
customers to significantly reduce greenhouse gas and NOX emissions. Using
world leading, patented green technology, Sofame serves building owners,
institutional, industrial and commercial markets through a network of
dedicated engineering representatives.
TSX Venture Exchange does not accept responsibility for the adequacy or
accuracy of this release.
For further information:
For further information: Kelly Hamblin, Sofame Investor Relations, (514)
523-6545, ext. 630, email@example.com