Thermal Energy, Johnson Controls tapped for East Coast pulp & paper contract

Innovative heat recovery system project to save millions in energy, reduced emissions expenses and bring Ottawa manufacturer up to $2 million...

OTTAWA, Canada, Aug. 2, 2005 (BUSINESS WIRE) -- Thermal Energy International Inc. has been awarded a contract to supply a FLU-ACE® heat recovery system to Johnson Controls' as part of a multi-million dollar energy efficiency project for its customer, an Eastern Canada pulp and paper company.

The value of the contract to Thermal Energy is in the range of $1.5 to $2 million. Work on the project is to commence immediately, with installation of the heat recovery system occurring over the next 10 to 12 months.

"This will be the largest FLU-ACE contract to date for Thermal Energy and represents a tremendous breakthrough for our company into a major industrial market." said Thermal Energy President and CEO Tim Angus. "We placed a priority on entering the pulp and paper industry and through the excellent efforts and support of Johnson Controls we have now achieved this important goal."

Thermal Energy's heat recovery technology recovers waste heat from paper machine dryers, industrial ovens, boilers, incinerators, cogeneration and process heaters, sometimes providing a complete smokestack replacement, while removing harmful pollutants, and returning "free" clean hot water for industrial processes. The technology also provides an attractive return on investment by significantly reducing fuel consumption and generating certifiable emissions credits.

Thermal Energy's detailed engineering evaluation has conclusively confirmed that the project will reduce the consumption of fossil fuels at this plant saving millions of dollars. It will also deliver significant environmental benefits, equivalent to permanently removing 1,840 cars from area roads. This includes annual emission reductions of 8,350 tons of carbon dioxide (CO2), 92 tons of sulphur dioxide (SO2) and 16 tons of nitrogen oxides (NOx).

"We are pleased to be moving forward on this project with Thermal Energy," said Alex A. Molinaroli, Vice President and General Manager for Johnson Controls. "We have worked very hard to bring innovative cost-saving solutions to the pulp and paper industry and the FLU-ACE technology helps make that possible."

This contract stems from a letter of intent (LOI) received by Thermal Energy from Johnson Controls on March 8. Under the LOI, Thermal Energy has already completed preliminary and detailed engineering evaluations for Johnson Controls which confirmed the projected costs and estimated savings to be derived from the FLU-ACE implementation. Johnson Controls subsequently proposed a technical solution to their customer which was accepted.

Thermal Energy's detailed engineering evaluation also confirmed that in addition to reducing the consumption of fossil fuels at this plant, the project will also deliver significant environmental benefits, equivalent to permanently removing 1,840 cars from area roads. This includes annual emission reductions of 8,350 tons of carbon dioxide (CO2), 92 tons of sulphur dioxide (SO2) and 16 tons of nitrogen oxides (NOx).

Thermal Energy (www.thermalenergy.com) is an environmental and energy technology company established in 1986. Headquartered in Ottawa, Canada, TMG is a designer, developer, fabricator, and supplier of proprietary and patented environmental compliance (air) and energy conservation, renewable energy products and technology solutions. Thermal Energy is a fully accredited professional engineering firm, and offers advanced process and applications engineering services. FLU-ACE is a registered trademark of Thermal Energy.

Johnson Controls Inc. (www.johnsoncontrols.com) is a global market leader in automotive systems and facility management and control. In the automotive market, it is a major supplier of integrated seating and interior systems, and batteries. For non-residential facilities, Johnson Controls provides control systems and services including comfort, energy and security management. Johnson Controls, founded in 1885, has headquarters in Milwaukee, Wis. Its sales for 2004 totaled $26.6 billion.

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