Second Order Win for TTcogen
TTcogen, which is 50% owned by Tecogen (TGEN – $5.00), sold a 55kW Combined Heat and Power (CHP) unit to an elementary school in New Jersey. This is the second order for TTcogen, only a couple of weeks after the first win. A full service contract was also included in the deal.
The TEDOM Micro T55 natural gas powered CHP unit will serve all of the school’s electrical and heating demand. This type of machine is particularly well suited for educational facilities with smaller energy requirements, as it has a compact equipment footprint, a long service life, and operates very quietly.
Noteworthy is that this order was won through a competitive process. What tipped the scale in favor of TTcogen was that the engineering expertise and strong collaborative relationship with the installation contractor allowed the school to save nearly $100,000 on the installation.
These remarkable cost savings were accomplished in a number of ways. First, TTcogen engineers came up with a simplified, yet improved design. In addition, many of the installation accessories will be factory assembled. So instead of hiring an expensive electrician, plumber or pipefitter to work on-site, much of their work is done more efficiently and at a lower cost at the factory. That way, the unit comes pre-assembled, which not only saves money, but also speeds up the installation.
Widest Range in United States
Similar to TTcogen’s initial sale, this order was won thanks to Tecogen’s cooperation with TEDOM, one of Europe’s largest CHP manufacturers. For the first order, the residential building was undersized to install a Tecogen CHP. Only a 35 kW machine was required, while Tecogen’s CHP units have an output between 60 kW and 100 kW.
As for the new project, the project engineer specifically requested a 50-60 kW synchronous generator CHP. In the past, that request would have eliminated Tecogen from consideration as its smaller CHP units use induction generators. However, now TTcogen could step in and compete for the project with the TEDOM synchronous generator portfolio.
In both cases a lost opportunity for Tecogen was turned into a sale thanks to the TEDOM joint venture. And this certainly won’t be the last sale for TTcogen. In fact, we expect the JV to have a bright future.
In a synchronous generator, the waveform of generated voltage is synchronized with (directly corresponds to) the rotor speed. In case of induction generators, the output voltage frequency is regulated by the power system to which the induction generator is connected.
TTcogen, the 50/50 joint venture corporation between Tecogen and TEDOM offers a complete package of 27 different CHP modules, ranging in size from 35 kW up to 4 MW. The JV brings TEDOM’s smaller 35 kW CHP unit to the U.S. market as well as its line of larger Cento and Quanto units. This greatly expands Tecogen’s market reach, which is limited to installations in multiples of its 60 kW, 75 kW and 100 kW CHP modules.
In the past, Tecogen often received inquiries from potential clients who ended up not buying a CHP from Tecogen because its units didn’t have the appropriate size for the customer’s facility. The building’s required load was either too big or too small for the Tecogen equipment. Now, thanks to the much expanded offering, TTcogen is able to service those potential customers.
Moreover, the TEDOM CHP modules are fully capable of running on a variety of fuel feedstocks, including natural gas, propane, and renewable natural gas (biofuel). These diverse capabilities truly bring TTcogen to the cutting edge of the CHP market in the United States.
The full product portfolio meets the needs of residential, commercial and industrial customers that require efficient and environmentally friendly energy solutions.
Attending Rodman & Renshaw Conference
Interesting for investors who will be in the neighborhood or who plan to attend the event is that Tecogen will present at Rodman & Renshaw’s 18th Annual Global Investment Conference, held September 11 – 13, 2016 at the Lotte New York Palace Hotel.
The Company’s presentation by Mr. John Hatsopoulos, Co-Chief Executive Officer of Tecogen, is scheduled to begin at 10:00 a.m. Eastern Time on Tuesday, September 13, 2016. Following the presentation, Mr. Hatsopoulos will be available for one-on-one meetings.
Note that those unable to attend in person may tune into the live webcast via the conference coordinator’s website.
The JV between Tecogen and TEDOM is clearly a success. After a few short weeks, two orders are won. And more salespeople will shortly be added to the team.
The wide CHP family and the top notch technology, offered by both Tecogen and TEDOM, make TTcogen the premier packaged CHP provider in the US.
All of this is excellent news for Tecogen as it benefits from TTcogen’s sales and services revenues.
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