COSTA MESA, Calif., Jan. 23, 2020 /PRNewswire/ -- Clean Energy Technologies, Inc. (OTCQB:CETY) Chief Executive Officer issues the following letter to Stockholders:
I am writing you to provide our annual update of CETY's growth initiatives during fiscal year 2019 to increase stockholder value by becoming a leading provider of renewable and energy efficiency products and solutions to commercial and government sectors. We are thrilled to be a part of the clean energy revolution taking place all over the world.
First, I would like to thank our stockholders for their continued support and interest in CETY.
In 2019 we continued to work diligently by investing in our employees, delivering value to our customers, advancing our technologies, and establishing reliable and efficient supply chains. Our management remains steadfast in its commitment to deliver value to our stakeholders and communities where we do business. Our very capable and experienced Board of Directors provides us with guidance and advice to build our company's future.
CETY's vision is to generate zero emission power from wasted heat and biomass, capture enormous amounts of wasted heat and convert it into low-cost clean energy.
Our journey began in 2016 with our acquisition of the GE Heat Recovery Solutions. GE spent over $85 million to advance the frictionless magnetic bearing turbine product and technology and establish a global intellectual property and patent portfolio. Each Clean Cycle II Generator TM, developed by GE, typically sells from $250,000 to $500,000 US Dollars, generates approximately 1 GWH of zero emission electricity.
After two years of addressing financial, operational, technological and logistical issues, we are now starting to see the fruits of our labor as more customers recognize our value proposition and adopt our technology. We have successfully formulated alliances around the world and will continue to form more.
In February of 2019 we announced that our partnership with Corycos Group to market and sell our products resulted in an initial $1.1 million contract. The agreement called for Corycos to implement a business development plan to market and solicit orders for CETY products. Corycos has included CETY's Clean Cycle II Organic Rankine Cycle (ORC) heat recovery generator in its product offerings to its clients in the Biogas industry as an important factor in improving efficiencies in new and existing facilities. This $1.1 million dual unit ORC installation on four biogas engines should make an excellent showcase of our products for Corycos' existing network of customers in Turkey, Russia, Africa, Middle East, Central and Southern Asia.
The Biogas markets represent one of most sizable industries and gaining exposure to this industry is no small feat and could take CETY to an entirely new level. Global Market Insights reports the waste to energy market size was $20.86 Billion in 2015 of which thermal based waste to energy technology occupied a significant percentage of the market, which may surpass $29 billion by 2023.
We believe that this agreement will be very beneficial for the immediate, and long-term growth of our company.
In February of 2019, we also announced the progress of our successful installation of our Clean Cycle II Generator TM with Woolwich Bioen in Elmira, Ontario, Canada. Woolwich is an anaerobic digestor power plant that utilizes two Jenbacher JGC420 generators to produce 1426 kW of electricity each, and, as a by-product, these generators give off waste heat. CETY's Clean Cycle II Generator TM utilizes the plants wasted heat lost to the atmosphere through the exhaust stream to essentially produce free electricity with no additional fuel required, resulting in an estimated annual electrical savings of 769,149 kWh.
In May of 2019 we announced that our two Clean Cycle II Generators TM for the Marshalls Energy Company to offset engine fuel use under a 10 year $2.3M US dollar agreement are in the process to be commissioned. The units will generate an estimated 194kW of net electrical power from the heat of existing engines that MEC operates on the island of Majuro. Over the 10-year agreement, the Clean Cycle units, which require no added fuel and produce no additional emissions, are expected to displace 3.5 million liters of fuel and 10,000 metric tons of CO2.
In July of 2019 we announced our up listing to the OTCQB under the symbol CETY. We believe that the OTCQB provides additional liquidity and the branding of a recognized marketplace necessary for our future growth.
We view additional opportunities for our products in high rise and large commercial buildings in U.S. cities. In April of 2019, we installed our first system in a high-rise at 1540 Broadway in New York City. There are over 50,000 buildings larger than 25,000 square feet just in NYC, and new rules will require a 20% reduction in their energy use by 2030. With thousands of high rise and large buildings, thousands of landfills, thousands of large reciprocating engines, and thousands of biomass operations, our vision for future sales is very sizable and solidly grounded.
2019 was a defining year for our company where we laid the foundation of several key initiatives aimed at driving sustainable growth and scalability in the energy markets. In 2020 we hope to continue the trend of increased revenues and generate new and profitable ways to sell or integrate our products in the domestic and international renewable clean energy markets.
We worked very hard to improve the capital position of the company and successfully raised $2.1 million in new capital in 2019. We also positioned the company to take advantage of favorable adjustments to the balance sheet. We implemented Microsoft's Enterprise Resource Planning system in the 4th quarter of 2019 to help improve efficiency and visibility and expect it to support our operations by lowering costs and reducing lead times.
Our market strategy over the past year was to position the company for growth by selling products directly and through distribution channels. Management also focused on consolidating the business operations and identifying global packaging partners and integrators to prepare for expected growth in 2020. We strengthened our suppliers, trained our people, developed strategic partners, and built up our sales pipeline which typically requires 12 – 18 months cycle.
In North America and Europe we believe that incentives and regulations will become key market drivers in cogeneration, combined heat to power (CHP), biomass, and waste to energy. There are incentives to convert organic waste to energy, including biomass and anaerobic digestion facilities. Some California municipalities have been mandated to purchase renewable power generated from agriculture and forestry waste at $0.18- $0.19 per kWh. There are also heat recovery incentives offered by NYSERDA in the state of New York.
Our value proposition is closely aligned with biomass energy producers and we are also working to become more than just a value-added supplier of equipment. We see real value in these types of applications as it creates more of a recurring revenue stream. As a result, we are identifying large and scalable opportunities in this area, including licensing agreements and potential merger and acquisitions.
In summary we have laid a strong foundation in 2019 for the new decade by:
I intend to keep you all informed as to current events, as well as longer range plans that will impact the growth of our company.
Meanwhile, if you have any questions or comments, feel free to send them to the email address below.
Clean Energy Technologies, Inc. designs, builds, and markets clean energy products focused on energy efficiency and environmental sustainability technologies. The Company's principal product is the Clean CycleTM organic rankine cycle heat recovery generator (HRG), offered by CETY's Clean Energy HRS, or Heat Recovery Solutions, subsidiary, www.heatrecoverysolutions.com. The Clean Cycle™ system captures waste heat from a variety of sources and turns it into electricity that can be used or sold back to the grid. CETY's proven, reliable technology allows municipal, commercial, and industrial users with heat sources, such as from industrial processes or energy production, to boost their overall energy efficiency with no additional fuel, no pollutants, and little ongoing maintenance. CETY's engineering and manufacturing resources support the Heat Recovery Solutions business, as well as CETY's other technologies. Headquartered in Costa Mesa, California, CETY's common stock is currently traded on the OTCQB Market under the symbol CETY. For more information, visit www.cetyinc.com or www.heatrecoverysolutions.com.
This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements may be identified my words such as "expect," "look forward to," "anticipate," "intend," "plan," "believe," "seek," "estimate," "will," "project," or words of similar meaning. Because such statements include risks, uncertainties and contingencies, many of which are outside our control, actual results may differ materially from those expressed or implied by such forward-looking statements. These risks, uncertainties, and contingencies include, but are not limited to those relating to: changes in general economic and market conditions; future technology performance; market acceptance and adoption of CETY's products and competitive products; the availability of financing; the acquisition and integration of business assets and operations, technologies, or companies; and other risk factors as outlined in CETY's periodic reports, as filed with the U.S. Securities and Exchange Commission. Forward-looking statements speak only as of the date on which such statements were made, and we undertake no obligation to update any such statements that may become untrue because of subsequent events.