Tecogen Signs One of the Largest Contracts in Its History
Tecogen Inc (TGEN – $3.37) has received an order for no less than 10 InVerde e+ Combined Heat and Power (CHP) units, one of the largest contracts in the Company’s history. The CHPs will be installed in a brand new residential building in Brooklyn, NY. Although no details were provided, the order is estimated to be worth well over $5 million.
Combined, the 10 systems have a peak generation capacity of over 1MW. The buyer opted to install 10 InVerde e+ units, instead of one large unit from a third party, simply because Tecogen’s equipment outclasses the competition.
First of all, an InVerde e+ can cut a building’s energy bills considerably. Knowing that the average InVerde e+ saves customers $50,000 – $100,000 annually on their utility bills, these 10 units will generate combined savings of approximately $500,000 – $1,000,000 per year.
The InVerde e+ also automatically starts up within 10 seconds in the event of a full blackout of the grid, making the CHP compliant with the new strict Type 110 standard for emergency and standby power systems.
In addition, these units will be equipped with cloud-based real-time performance monitoring via Tecogen’s CHPInsight software. That way, their performance can be monitored on an iPad or computer from anywhere in the world.
Moreover, the CHPs will be equipped with an Ultera system so that harmful emissions of NOx and CO are lowered to near-zero levels. The 10-unit system is expected to eliminate approximately 5,500 tons of carbon dioxide per year when compared to traditional energy sources. That means that this installation will generate annual carbon savings on par with removing over 1,000 cars from the road or planting nearly 130,000 trees.
Finally, because Tecogen has a market-leading fleet of installed CHPs in New York City, the Company is able to provide the highest level of customer service to both new and existing customers. After all, proper servicing ensures that buyers of our equipment can enjoy the levels of savings and reliability that they expect and demand.
A History of Large Contract Wins
Although these large multi-unit orders are an exception, Tecogen has won several of them over the past few years.
- Back in May of 2017, Tecogen signed an agreement with WGL Energy Systems to install seven Tecogen InVerde 100 e+ CHP modules at a large, multiunit residential complex in Manhattan, New York;
- In February 2017, six CM-75 Combined Heat and Power units were sold to MGM Springfield, a $950 million resort casino in Springfield, Massachusetts that is owned and operated by MGM Resorts International;
- In December 2016, the Company was selected to power a large multi-unit residential complex in Harlem, NY. The order comprised of five 100kW InVerde e+ models;
- In July 2015, an order for 14 Tecogen CHP modules was received for six schools in Long Island, NY. The contract was awarded after an initial feasibility study of each school in the district for energy savings and improved carbon footprint resulting from implementation of CHP technology;
- In October 2014, a contract for six TECOCHILL natural gas air-cooled chillers was announced. The chillers were installed in the New York Container Terminal facility in Staten Island, New York and produced the refrigeration needed for a 66,400 sq. ft. climate controlled warehouse for temperature sensitive cargo. The TECOCHILL units cut the electric demand for the facility by as much as 300kW;
- In March of 2014, Tecogen closed the sale of a 525-kW cogeneration system for a major acute care hospital and its associated medical office buildings and clinics in greater Sacramento, California. A total of seven Tecogen modular 75-kW CHPs equipped with Tecogen’s patented Ultera emissions system were installed; and
- In October 2013, the Company signed a deal for seven Combined Heat and Power systems to a condo co-ops in New York. The order consisted of five 100 kW InVerde CHP modules with available standby power and two 75 kW induction-based CHP modules.
This impressive order again highlights the scalability of Tecogen’s exclusive microgrid technology and the growing awareness of the Company’s rock-solid reliability, substantial cost savings, and small environmental footprint of its products. Recommendation BUY.
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