Thermal Energy Announces Additional $4.1 Million Contract with Global Pharmaceutical Leader

Rhea-AI Summary

Thermal Energy International (OTCQB: TMGEF) has secured an additional $4.1 million contract from a leading multinational pharmaceutical company for a turn-key heat recovery project implementation at a U.S. manufacturing facility. This latest order brings the total project value to $5.6 million CAD.

The project represents a significant milestone in the companies' strategic partnership, following a series of agreements including a Master Services Agreement in December 2024, a $500,000 engineering contract, and a $1 million custom equipment order. Once operational, the system will reduce natural gas consumption and CO₂ emissions by 12.5%, eliminating up to 2,038 metric tons of CO₂ emissions annually. Revenue from this order is expected within twelve months.

Positive

• Secured significant $4.1 million additional contract, bringing total project value to $5.6 million CAD
• Project expected to reduce customer's natural gas consumption and CO₂ emissions by 12.5%
• Strategic partnership with Fortune 500 pharmaceutical company offers potential for additional projects at other global manufacturing sites
• Revenue expected to be earned within twelve months
• Demonstrates successful project progression from engineering to full implementation

Negative

• None.

Canadian cleantech firm hired to design, implement and commission a turn-key heat recovery project at one of the Fortune 500-listed customer's U.S. manufacturing facilities

Ottawa, Ontario--(Newsfile Corp. - July 3, 2025) - Thermal Energy International Inc. (TSXV: TMG) (OTCQB: TMGEF) ("Thermal Energy" or the "Company"), a provider of innovative energy efficiency and carbon emission reduction solutions to major corporations around the world, is pleased to announce that it has received an additional order valued at $4.1 million for a previously announced heat recovery project for a leading multinational pharmaceutical company. This latest order calls for Thermal Energy to design, fully implement, and commission the project on a turn-key basis, bringing the total value to Thermal Energy for this project to $5.6 million. All figures are shown in CAD.

"This implementation and commissioning contract follows a series of key achievements and deepening collaboration between Thermal Energy and this customer," said William Crossland, CEO of Thermal Energy International. "Originally stemming from a Project Development Agreement, we signed a Master Services Agreement with the customer in December 2024. On February 11^th of this year, we announced a $500 thousand contract to complete the detailed engineering for this project – representing the largest engineering contract in our history. On June 26^th, we announced the $1 million custom equipment order for this project. We are excited to now be asked to bring this project to completion and operational launch.

"This is an important project for us and the customer. We look forward to advancing our strategic partnership focused on energy efficiency and decarbonization goals. This project and our suite of solutions align with the customer's ambitious sustainability strategy and their commitment to the United Nations' Race to Zero campaign. Finally, this leading pharmaceutical company has several manufacturing sites around the world that could benefit from our technologies."

Once fully commissioned, the heat recovery system is expected to reduce the site's natural gas consumption and associated CO₂ emissions by 12.5%, resulting in up to 2,038 metric tons of CO₂ emissions eliminated annually.

The revenue from this order is expected to be earned within twelve months.

Readers are encouraged to subscribe to TEI News to receive strategic news and updates directly to their inbox.

ENDS

For media enquiries, contact: Thermal Energy International Inc. Canada: 613-723-6776 UK: +44 (0)117 917 2179 Marketing@thermalenergy.com

For investor enquiries: William Crossland President and CEO Thermal Energy International Inc. 613-723-6776 Investors@thermalenergy.com

Notes to editors

About Thermal Energy International Inc.

Thermal Energy International Inc. provides energy efficiency and emissions reduction solutions to Fortune 500 and other large multinational companies. We save our customers money by reducing their fuel use and cutting their carbon emissions. Thermal Energy's proprietary and proven solutions can recover up to 80% of energy lost in typical boiler plant and steam system operations while delivering a high return on investment with a short, compelling payback.

Thermal Energy is a fully accredited professional engineering firm with engineering offices in Ottawa, Canada, Pittsburgh, USA, as well as Bristol, UK, with sales offices in Canada, UK, USA, Germany, Poland, and Italy. By providing a unique mix of proprietary products together with process, energy, and environmental engineering expertise, Thermal Energy can deliver unique, site-specific turnkey and custom engineered solutions with significant financial and environmental benefits for our customers.

Thermal Energy's common shares are traded on the TSX Venture Exchange (TSX-V) under the symbol TMG and on the OTCQB under the symbol TMGEF. For more information, visit our investor website at https://investors-thermalenergy.com or company website at www.thermalenergy.com and follow us on Twitter at https://twitter.com/GoThermalEnergy.

Cautionary Statements

This press release contains forward-looking statements relating to, and amongst other things, based on management's expectations, estimates and projections, the anticipated effectiveness of the Company's products and services, the timing of revenues to be received by the Company, the expectation that orders in backlog will become revenue, the anticipated benefits of the Company's current efforts at training and business improvement efforts, opportunities for growth, the Company's belief that it can capitalize on opportunities, the size of markets and opportunities open to the Company. Information as to the amount of heat recovered, energy savings and payback period associated with Thermal Energy International's products are based on the Company's own testing and average customer results to date. Statements relating to the expected installation and revenue recognition for projects, statements about the anticipated effectiveness and lifespan of the Company's products, statements about the expected environmental effects and cost savings associated with the Company's products and statements about the Company's ability to cross-sell its products and sell to more sites are forward looking statements. These statements are not guarantees of future performance and involve a number of risks, uncertainties and assumptions.

Many factors, some of which are outside of the Company's control, could cause events and results to differ materially from those stated. Fulfillment of orders, installation of product and activation of product could all be delayed for a number of reasons, some of which are outside of the Company's control, which would result in anticipated revenues from such projects being delayed or in the most serious cases eliminated. Actions taken by the Company's customers and factors inherent in the customer's facilities but not anticipated by the Company can have a negative impact on the expected effectiveness and lifespan of the Company's products and on the expected environmental effects and cost savings expected from the Company's products. Any customer's willingness to purchase additional products from the Company and whether orders in the Company's backlog as described above will turn into revenue is dependent on many factors, some of which are outside of the Company's control, including but not limited to the customer's perceived needs and the continuing financial viability of the customer. The Company disclaims any obligation to publicly update or revise any such statements except as required by law. Readers are referred to the risk factors associated with the Company's business as described in the Company's most recent Management's Discussion and Analysis available at www.sedarplus.ca.

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Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/257605

FAQ

What is the total value of TMGEF's heat recovery project with the pharmaceutical company?

The total project value is $5.6 million CAD, including the latest $4.1 million implementation contract.

How much will the heat recovery system reduce CO₂ emissions for TMGEF's pharmaceutical client?

The system will reduce CO₂ emissions by 12.5%, eliminating up to 2,038 metric tons of CO₂ emissions annually.

When will TMGEF recognize revenue from the $4.1 million contract?

The revenue from this order is expected to be earned within twelve months.

What previous contracts led to TMGEF's latest $4.1 million agreement?

The project evolved through a Master Services Agreement in December 2024, followed by a $500,000 engineering contract and a $1 million custom equipment order.

What is the scope of TMGEF's latest contract with the pharmaceutical company?

The contract covers the design, full implementation, and commissioning of a turn-key heat recovery project at the customer's U.S. manufacturing facility.