Tecogen Announces the Formation of Joint Venture Company with TEDOM a.s.
TTcogen™ now offers a full suite of efficient clean energy solutions that substantially expands the addressable market for packaged CHP equipment in North America
WALTHAM, Mass., May 19, 2016 /PRNewswire/ -- Tecogen® Inc. (NASDAQ: TGEN; the "Company"), a next-generation manufacturer of natural gas-fueled, engine-driven, combined heat and power (CHP) products, has formed a 50/50 joint venture corporation, TTcogen LLC, with TEDOM a.s., one of Europe's largest combined heat and power (CHP) manufacturers. TTcogen will offer a complete package of 27 CHP modules that are fully capable of running on a variety of fuel feedstocks, including renewable natural gas (biofuel). Ranging in size from 35 kW up to 4 MW, the full product portfolio will quadruple Tecogen's addressable market for CHP.
Headquartered in the Czech Republic, TEDOM has spent 25 years pioneering the manufacture of equipment designed for the effective and environmentally friendly utilization of energy fuel resources. Similar to Tecogen's long history of cogeneration innovation and expertise, TEDOM has refined the packaged CHP concept in Europe with a product portfolio that stretches across size range and fuel category.
"TEDOM has been trying to identify a strong partner in the United States and when we met with the leadership at Tecogen, we knew that our organizations would align well," said Josef Jeleček, TEDOM General Director. "Tecogen's proven track record in the U.S. market, long term experience with cogeneration, along with its strong service offering and sales network made it a logical choice," added Mr. Jeleček.
John Hatsopoulos, Tecogen director and Co-Chief Executive Officer, noted, "This joint venture is a significant milestone for Tecogen and the result of months of tireless management effort. I am thrilled we have found such excellent partners in TEDOM and look forward to working together to build a long and profitable partnership collaboration."
The newly formed Delaware registered limited liability company will utilize Tecogen's sales and service network to bring TEDOM's efficient cogeneration equipment to the United States market. Offering complimentary CHP technologies, the combined product portfolio of the two companies will better position the joint venture corporation to address a wide array of customer needs and significantly expand the opportunity for CHP in the United States. TTcogen will operate out of Tecogen's Waltham, MA headquarters and initially employ several sales and engineering specialists, with further personnel expected to be added as the business expands. In addition to equipment sales and servicing agreements, the joint venture partners will also look to collaborate on manufacturing, engine technology, development of new products, and improvement of existing products.
Speaking about the joint venture, Tecogen Co-Chief Executive Officer Benjamin Locke added, "TTcogen really will be the thought leader in the North American CHP space. Backed by the oldest and most established names in the packaged cogeneration industry from both TEDOM in Europe and Tecogen in the United States, the new company will be well positioned to deliver a full suite of clean power solutions, vastly expanding the potential market for our technology."
In 2012, the White House issued an executive order committing to add 40 GW in new cogeneration capacity in the United States by 2020. This joint venture creates a strong product offering in the North American CHP space that will provide a complete range of efficient and cost effective clean energy solutions to meet the demands of customers in almost every category. Most notably, TEDOM's specialized line of cogeneration equipment has the power to operate on biofuel, a renewable energy source with a rapidly growing market. In addition to biofuel capabilities, the joint venture will also bring TEDOM's smaller Micro T35 35kW combined heat and power (CHP) unit to the U.S. market as well as TEDOM's line of larger Cento and Quanto units. This will greatly expand Tecogen's market reach, which is currently limited to pipeline natural gas and propane and to installations in multiples of its 75 kW and 100 kW CHP modules.
The joint venture partners will host a conference call to discuss the deal and the business plan on Tuesday, May 24, 2016 at 11:30 a.m. eastern time. To listen to the call dial (888) 349-0103 within the U.S., (855) 669-9657 from Canada, or (412) 902-0129 from other international locations. Participants should ask to be joined to the TTcogen Joint Venture call. Please begin dialing at least 10 minutes before the scheduled starting time. The conference call will be recorded and available for playback one hour after the end of the call. The earnings conference call will also be webcast live. To register for and listen to the webcast, go to http://investors.tecogen.com/webcast. Following the call, the webcast will be archived for 30 days.
Conference call will be recorded and available for playback one hour after the end of the call through Tuesday, May 31, 2016. To listen to the playback, dial (877) 344 7529 within the U.S., (855) 669-9658 from Canada, or (412) 317-0088 outside the U.S. and use Replay Access Code 10086714. Following the call, the webcast will be archived for 30 days.
About TEDOM a.s.
TEDOM is one of the major European producers of CHP units with combustion engines. To date TEDOM has produced more than 3,500 CHP units in a power range from 7 kilowatts up to 10 megawatts. TEDOM sells its products successfully in tens of countries worldwide and this year is celebrating 25 years of existence.
The TEDOM CHP units are offered in the versions fueling natural gas, LPG, biogas, sewage gas, landfill gas, and coal mine gas. Customers can opt for the version with sound enclosure, in a container or for an open module. The CHP units having a power of 80 – 200 kW are fitted with their own TEDOM gas engines, the rest of the TEDOM CHP units are fitted with engines made by other global manufacturers. Please visit http://cogeneration.tedom.com/ for more information.
Tecogen manufactures, installs, and maintains high efficiency, ultra-clean, combined heat and power products including natural gas engine-driven cogeneration, air conditioning systems, and high-efficiency water heaters for residential, commercial, recreational and industrial use. The company is known for cost efficient, environmentally friendly and reliable products for energy production that, through patented technology, nearly eliminate criteria pollutants and significantly reduce a customer's carbon footprint.
In business for over 20 years, Tecogen has shipped more than 2,300 units, supported by an established network of engineering, sales, and service personnel across the United States. For more information, please visit www.tecogen.com.
Tecogen, InVerde, Ilios, Tecochill, Ultera, e+, and TTcogen are registered trademarks or trademark pending registration of Tecogen Inc.
Forward Looking Statements
This press release may contain forward-looking statements under the Private Securities Litigation Reform Act of 1995 that involve a number of risks and uncertainties. Important factors could cause actual results to differ materially from those indicated by such forward-looking statements, as disclosed on the Company's website and in Securities and Exchange Commission filings. The statements in this press release are made as of the date of this press release, even if subsequently made available by the Company on its website or otherwise. The Company does not assume any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made.
Tecogen Media & Investor Relations Contact Information:
Ariel F. Babcock, CFA
John N. Hatsopoulos
P: (781) 466-6413
P: (781) 622-1120
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SOURCE Tecogen Inc.
Released May 19, 2016