Hardly a week goes by without Tecogen (TGEN – $3.29) announcing a new sales agreement. The past week was no different. The Company first sold two InVerde e+ CHP units to power a luxury condominium building in Manhattan, New York. Then it announced the sale of two 200-ton Tecochill STx Series chillers to an indoor cannabis growing facility located near Boston, MA.
The apartment block on Manhattan’s west side was built in 2006. However, it was severely damaged by flood waters when hurricane Sandy struck with an unforeseen vengeance in October 2012, leaving more than 8 million people without power.
As part of extensive repair work due to the flooding, the building operators have opted to install two 100kW InVerde e+ Combined Heat & Power systems. These have the ability to run independently of the grid in “Island Mode”, providing power for the building even when there is a blackout. Moreover, thanks to their efficiency, the CHP units will enable the building and its residents to enjoy significant savings on their monthly energy bills.
The sale of the two Tecochill units is Tecogen’s seventh into North America’s burgeoning indoor cannabis industry.
For cannabis growers, it is imperative to use the best and most reliable equipment available. After all, cannabis is a high value crop, so there’s lots of money to win, but also to lose.
Consequently, choosing Tecogen equipment is logical for many of them, as the benefits of Tecochills are quite significant in the agriculture space. For example, by running on inexpensive natural gas, they lower a greenhouse’s cooling costs with 30 to 60 percent, by eliminating most of the electrical demand (kW) associated with providing cooling. In addition, they offer optional “waste” heat that is available whenever the chiller is running. This high-quality heat source (up to 230°F hot water) literally comes for free. As an added bonus, customers are assured their greenhouses remain cool and their crops don’t experience adverse temperature fluctuations during power outages, because the chillers are fed by reliable natural gas.
Moreover, the units can be equipped with Tecogen’s patented Ultera emission control technology. That way, the facility not only cuts its carbon footprint in half (via reductions in energy usage), but also reduces the emission of harmful smog-generating criteria pollutants (NOx and CO) to near-zero levels.
Thanks to this cutting-edge emissions control technology, the carbon dioxide (CO2) from the cleaned exhaust stream can be used as fertilizer to improve growing conditions.
Extreme forces of nature, such as superstorm Sandy, and more recently monster hurricanes Irma and Maria, remind us of the importance for large apartment buildings to be able to keep the elevators in operation, the water running, key areas lit, and sump pumps working during an outage.
Tecogen’s unique product portfolio delivers a priceless peace-of-mind to people, knowing they can enjoy basic needs such a power, heat and hot water when electricity is out for days or weeks.
The valuable characteristics of Tecogen’s CHP systems are recognized more and more. For example, in the first nine months of 2017, the Company has won orders for twenty Tecochill units, which is almost double the full-year 2016 total. With respect to indoor farming Tecogen has only begun to scratch the surface of the market potential for its chillers and heaters.
Take advantage of the temporary dip in Tecogen’s stock price, as it’s not going to last long. We are adding more shares to our position. Recommendation BUY.
|Smallcaps.us Advice: Buy||Price Target: $8.41||Latest Company Report (pdf)|
|For important disclosures, please read our disclaimer.|