Thermal Energy International Inc. Receives an Additional $1.6 Million Order to Deliver Customized HeatSponge Heat Recovery Units to the Arctic

Rhea-AI Summary

Thermal Energy (OTCQB: TMGEF) received a $1.6 million order to supply eight custom HeatSponge heat recovery units to a remote Arctic mining operation, following an earlier summer order of two units for approximately $400,000, bringing total related orders to about $2.0 million. All figures are in CAD and revenue is expected to be earned within 12 months.

The units are modular, match-marked for standard cargo aircraft, engineered for reciprocating engine environments and extreme cold, and designed for rapid on-site reassembly to meet tight logistical and generator-availability windows. The company expects gross margin in line with historical project margins.

Positive

• $1.6M order for eight HeatSponge units
• Total related orders ~$2.0M including summer delivery
• Revenue from project to be recognized within 12 months
• Modular design enables standard cargo aircraft shipment

Negative

• Mine accessible by road only during a brief annual window
• Replacement requires generator downtime, reducing redundancy
• Logistics require precise on-site reassembly timing

Ottawa, Ontario--(Newsfile Corp. - November 20, 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, announced today that it has received a $1.6 million order to supply eight custom-engineered HeatSponge heat recovery units manufactured by its wholly owned subsidiary, Boilerroom Equipment Inc. ("BEI"), to a remote mining operation in the Arctic. This order follows a previously unannounced order from this customer to deliver and commission two units this past summer for approximately $400 thousand. All figures are shown in CAD.

"This project is one of the largest and most technically challenging HeatSponge orders in BEI's history," said William Crossland, Thermal Energy CEO. "All 10 units were engineered by BEI to withstand the demands of reciprocating engine environments, which unlike traditional boiler systems, are characterized by much hotter temperatures, higher pressure, and relentless vibration. Pre-existing heat exchangers on site were buckling under the strain, threatening potential loss of heat and power in a region where temperatures of -40°C can be routine. We're proud that this customer chose Thermal Energy and BEI for this very demanding application. This is also an excellent example of the strong synergies and collaboration between Thermal Energy and BEI, with the Thermal Energy sales team focusing their efforts on larger strategic opportunities with key customers."

Smart engineering meets arctic logistics

"This project exemplifies our commitment to solving complex energy challenges in the world's most demanding environments," said Vincent Sands, President of Boilerroom Equipment Inc. "We're proud to support the resilience and sustainability of Arctic operations through innovative engineering."

In addition to the demanding operating conditions the heat recovery units need to withstand, BEI had to overcome unprecedented logistical constraints. The mine is accessible by road only during a brief period each year. For the remainder of the year, all supplies must be flown in via cargo aircraft. To avoid using more expensive heavy-lift specialty cargo aircraft the project will employ modular construction techniques so that the units can be shipped as aircraft-friendly components. The units will be built in match-marked sections at BEI's facility, disassembled, and sized to fit standard cargo aircraft, eliminating reliance on rare and costly heavy-lift planes.

Replacement of the pre-existing units with the new HeatSponge units will also have to happen within a narrow window of time as the generator will not be available during the change out, reducing the redundancy of generators available. Pre-engineered modules designed for rapid deployment allow on-site plant staff to reassemble units without specialized contractors or equipment.

Key innovations include:

• Modular Build: Match-marked sections sized for standard cargo aircraft.
• Plug-and-Play Assembly: On-site crews can reassemble without specialized tools.
• 22% Efficiency Boost: Rectangular square-pitch, counter-flow heat exchanger.
• Durable Casing: Reinforced stainless steel resists vibration and thermal stress.
• Leak-Proof Design: Dual-layer access doors reduce exhaust leakage.
• Custom Finned Tubes: Tailored to site constraints and ease of cleaning.

The revenue from this order is expected to be earned within 12 months. The Company expects the gross margin for the project to be in line with historical amounts for its projects. Details on Thermal Energy's gross margins are available in its quarterly disclosure materials.

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. Fulfilment 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/275262

FAQ

What did Thermal Energy (TMGEF) announce on November 20, 2025?

Thermal Energy announced a $1.6M order for eight custom HeatSponge units to serve an Arctic mine, adding to a prior ~$400K summer order.

When will TMGEF recognize revenue from the Arctic HeatSponge order?

The company expects revenue from the project to be earned within 12 months.

How are the HeatSponge units shipped to the Arctic mine for TMGEF?

Units are built in match-marked modules sized for standard cargo aircraft to avoid heavy-lift planes.

What operational risks did Thermal Energy highlight for the Arctic project?

The mine has limited road access, a narrow change-out window, and generator downtime reduces redundancy during replacement.

What technical features do the custom HeatSponge units for TMGEF include?

Features include plug-and-play modular assembly, reinforced stainless casing, dual-layer access doors, and custom finned tubes for cleaning.