Clean Energy Technologies, Inc. (Clean Energy Technologies) develop renewable energy products and solutions and establish partnerships in renewable energy that make environmental and economic sense.
The company’s intention is to be a segment leader in the Zero Emission Revolution by offering eco-friendly green energy solutions, clean energy fuels and alternative electric power for small and mid-sized projects in North America, Europe, and Asia. The company targets sustainable energy solutions t...
Clean Energy Technologies, Inc. (Clean Energy Technologies) develop renewable energy products and solutions and establish partnerships in renewable energy that make environmental and economic sense.
The company’s intention is to be a segment leader in the Zero Emission Revolution by offering eco-friendly green energy solutions, clean energy fuels and alternative electric power for small and mid-sized projects in North America, Europe, and Asia. The company targets sustainable energy solutions that are profitable for the company, profitable for its customers and represent the future of global energy production.
Principal Businesses
Waste Heat Recovery Solutions – The company recycles wasted heat produced in manufacturing, waste to energy and power generation facilities using the company’s patented Clean Cycle generator to create electricity which can be recycled or sold to the grid.
Waste to Energy Solutions - The company converts waste products created in manufacturing, agriculture, wastewater treatment plants and other industries to electricity, renewable natural gas (‘RNG’), hydrogen and bio char which are sold or used by the company’s customers.
Engineering, Consulting and Project Management Solutions – The company has expanded its legacy electronics and manufacturing business and plans to manufacture component parts for the company’s Waste Heat Recovery and Waste to Energy business and to provide consulting services to municipal and industrial customers and Engineering, Procurement and Construction (EPC) companies so they can identify, design and incorporate clean energy solutions in their projects.
CETY HK
Clean Energy Technologies (H.K.) Limited (‘CETY HK’) consists of two business ventures in mainland China:(i) the company’s natural gas (‘NG’) trading operations sourcing and suppling NG to industries and municipalities. The NG is principally used for heavy truck refueling stations and urban or industrial users. The company purchases large quantities of NG from large wholesale NG depots at fixed prices which are prepaid for in advance at a discount to market. The company sells the NG to its customers at prevailing daily spot prices for the duration of the contracts; and (ii) the company’s planned joint venture with a large state-owned gas enterprise in China called Shenzhen Gas (Hong Kong) International Co. Ltd. (‘Shenzhen Gas’), acquiring natural gas pipeline operator facilities, primarily located in the southwestern part of China. The company’s planned joint venture with Shenzhen Gas plans to acquire, with financing from Shenzhen Gas, natural gas pipeline operator facilities with the goal of aggregating and selling the facilities to Shenzhen Gas in the future. According to the company’s Framework Agreement with Shenzhen Gas, the company will be required to contribute $8 million to the joint venture which plans to raise in future rounds of financing. The terms of the joint venture are subject to the execution of definitive agreements.
Business Strategy
The company’s strategy is focused on further developing the company’s existing Waste Heat Recovery business while expanding into the rapidly growing markets for Waste to Energy Solutions and integrated clean energy engineering, and project management services. The company is initiating a strategic transition to function increasingly as an independent power producer.
The company’s strategy focuses on three main elements:
Expanding the company’s Waste Heat Recovery product line to include waste heat recovery ORC systems producing over 1 MW of power so the company can qualify for midsized and large heat recovery projects in the United States, China, Southeast Asian and Pacific Rim countries.
Establishing a Waste to Energy business by selling the company’s ablative thermal processing products based on proprietary HTAP technology and developing small and mid-sized waste to energy power plants producing electricity and RNG for the grid and methane, hydrogen and biochar for resale.
Leveraging the company’s engineering, procurement and manufacturing experience in Waste Heat Recovery and Waste to Energy to assist companies and EPCs incorporate clean energy solutions into energy and industrial construction projects.
The company intends to implement this strategy through:
Adding a new ORC system manufactured by Enertime for Waste Heat Recovery that will enable the company to implement projects in the U.S. markets producing between 1 MW and 10 MW of electricity.
Taking advantage of Inflation Reduction act of 2022 federal investment tax credits and state incentives that now include waste heat recover as a recognized clean energy source making the company’s Clean Cycle Generator and ORC systems more profitable to install. On August 2022, Congress passed the Inflation Reduction act offering 30% Investment Tax Credit and technology neutral tax credits offering clean electricity production credit and investment credit. CETY’s products directly benefit from these tax credits.
Benefiting from higher energy costs which provide higher returns on the company’s Waste Heat Recovery and Waste to Energy products and projects.
Improving the company’s balance sheet and capital position to permit the company to invest in more products and projects.
Establishing HTAP manufacturing facilities in Turkey for the company’s Waste to Energy products and expanding patent protection on the proprietary technology.
Leveraging the company’s existing marketing channels to sell HTAP Waste to Energy products to industrial companies and government agencies.
Working with clean energy project development and finance companies to establish Waste to Energy power plants producing electricity, RNG, hydrogen, methane and biochar from biomass, municipal waste, timber waste and other biomass and while retaining an equity interest in these facilities to provide re-occurring revenue.
Participate in other minority investments in medium to large clean energy projects being developed in ASEAN countries that may be sourced by the company’s majority stockholder in Hong Kong and other capital partners.
Leveraging the LNG trading and investment relationships to create opportunities for the company to sell its Waste Recovery and Waste to Energy products in China and to provide engineering, consulting and project management services.
Business and Segment Information
The company designs, produces and markets clean energy products and integrated solutions focused on energy efficiency and renewable energy. The company’s aim is to become a leading provider of renewable and energy efficiency products and solutions by helping commercial companies and municipalities reduce energy waste and emissions, lower energy costs and generate incremental revenue by providing electricity, renewable natural gas and biochar to the grid.
Segment Information
The company’s four segments for accounting purposes are:
Clean Energy HRS & CETY Europe – The company’s Waste Heat Recovery Solutions, converting thermal energy to zero emission electricity.
CETY Renewables Waste to Energy Solutions – Providing Waste to Energy technologies and solutions.
Engineering and Manufacturing Business – providing customers with comprehensive design, manufacturing, and project management solutions.
CETY HK – The parent company of the company’s NG trading operations in China. Prior to the first quarter of 2022 the Company had three reportable segments but added the CETY HK segment to reflect its recent new businesses in China.
Clean Energy Solutions Business
Waste Heat Recovery Solutions
The company provides its customers with power plants that capture wasted heat energy and produce electricity using a unique Organic Rankine Cycle (ORC) system containing the company’s Clean Cycle generator. The company’s magnetic bearing Integrated Power Modules is at the heart of the company’s Clean Cycle generator which can fit into a standard cargo container the company calls its Containerized System Module, producing 140KW per Clean Cycle generator and can be linked together for projects generating up to 1MW of power.
The company’s recent agreement with Enertime now permits the company to install midsized and large ORC systems (between 1 MW and 10 MW) in the United States, allowing the company to offer a full range of ORC systems to its customers. This new capacity will enable the company to expand its product offerings into larger scale waste recovery products in the United States. Enertime is a leader in producing ORC systems in Europe.
ORC waste heat recycling systems use pressurized working fluids that have a lower boiling point than water which make them ideal to repurpose waste heat into electricity. While most manufacturing processes do not produce enough heat to turn water into steam, there is enough heat to generate pressurized refrigerant in the company’s ORC systems which is used to turn a turbine at high speeds to generate electricity.
The company can link up to 10 Clean Cycle Generators together which can generate up to 10 GWh of electricity per year from waste heat which the company estimates would reduce up to 5000 metric tons of CO2 production per year in an industrial heat recovery system or the annual equivalent of the CO2 emissions of approximately 2000 cars per year.
The company’s Clean Cycle generator is the most efficient turbine generator in it’s class and size available in the market for ORC systems generating up to 1 MW. The company estimate that the Clean Cycle generator has higher efficiency of approximately 15% than the company’s competitors and its magnetic design eliminates the use of oils and lubricants, significantly reducing down time, repairs and operating costs. The company’s Integrated Power Module is compact and fit into a standard cargo container that can be delivered on a turnkey basis resulting in lower installation and implementation costs than on-site assembly.
These features and benefits give the company an important competitive advantage when building heat recovery power plants for the company’s customers and provide the company with the opportunity to compete with and obtain market share from the dominant industrial waste heat to power systems.
Over 121 Clean Cycle generators have been deployed to date with 88 units used in biomass and waste to energy projects, 4 with diesel electric generators, 3 with turbine electric generators and 26 in industrial electric production applications. The company expects to raise additional funds to expand the company’s capacity to install 6-8 units per year which should approximately double the company’s sales on a year-to-year basis.
The patented technology used in Clean Cycle generator was purchased from General Electric International, together with over 100 installation sites, making the company one of the leading provider of small-scale industrial waste heat to power systems. The company has an exclusive license from Calnetix to use their magnetic turbine for heat waste recovery applications.
A complete ORC System with Integrated Power Module housed in a Containerized System Module (CSM)
Waste to Energy Solutions
The company is adding a new business line in its clean energy solutions segment consisting of Waste to Energy processing equipment, engineering services and Waste to Energy processing power plant joint ventures where the company expects to retain an ownership interest in the project.
Waste-to-Energy technologies that process non-renewable waste can reduce environmental and health damages while generating sustainable energy. Waste-to-Energy technologies consist of waste treatment process that creates energy in the form of electricity, heat or fuels from a waste source. These technologies can be applied to several types of waste: from the biomass (e.g. woodchips) to semi-solid (e.g. thickened sludge from effluent treatment plants) to liquid (e.g. domestic sewage) and gaseous (e.g. refinery gases) waste.
Waste to Energy Solutions can be used:
In any town, city or province with established waste management and collection.
Where there is a consistent supply of solid waste.
Places where treatment costs increase with shortages of space to store waste.
In areas with high energy prices to allow for cost of recovery from waste.
Waste to Energy Solutions have many benefits:
Electricity from Waste to Energy plants can be generated from small amounts up to 30 MW providing for a wide range of opportunities to sell it back to the grid.
The synthetic renewable fuel gas produced from waste can be used for various production recyclable energy such as hot water, thermo-oil or steam, renewable natural gas or hydrogen.
Landfill waste is reduced and so is leachate and methane released from decomposing landfills.
Waste is a reliable source of energy and production is typically predictable and low cost whereas fossil fuel prices can fluctuate dramatically.
But Traditional Incineration Methods Have Significant Downsides:
Air pollution can increase because scrubbing technologies are very expensive to install.
Many industrial, agricultural, and mixed municipal solid wastes have high moisture content at source and direct incineration of such waste requires burning fossil fuel.
To maintain thermal conversion process.
Carbon is released into the air which would otherwise be stored in landfill.
Ash and flue gas cleaning residues from incineration can also cause poisonous leachate problems if not properly disposed of which is costly and causes downstream environmental issues.
Generating electricity from incineration releases more CO2, SO2, NOx and mercury than natural gas.
The most common form of waste to energy systems are based on incinerators which simply burn waste using air. The Thermal Treatment on Grate is the most widespread technology being used by large waste landfills to generate electricity and heat. These systems produce substantial amounts of ash, heavy metals and carbon dioxide which need to be treated and disposed of to minimize its impact on the environment. They also require substantial amounts of pre-treatments prior to burning.
The Thermal on Grate incineration process, while wide-spread, is too expensive and complex for smaller and mid-sized waste to energy projects creating, what the company believe, a significant market opportunity in small and mid-sized waste processing applications to create not only electricity but valuable renewable natural gas, bio diesel oil, hydrogen, methane, and biochar.
The company’s solution is a patented High Temperature Ablative Pyrolysis (HTAP) Biomass Reactor as viable commercial solution to the costs and environmental problems posed by traditional incarnation methods. The company has the exclusive license and right to sell the HTAP10 and HTAP5 and related products manufactured by Enex which has a proven installed commercial base of customers using its waste to energy solutions. This is an ideal solution to process waste for small to mid-sized waste to energy generation applications needed for processing industrial and municipality solid waste, agriculture waste, and forestry waste.
CETY has licensed proprietary patented ablative pyrolysis system for commercial use that has been installed in 7 sites for use in waste to energy creating applications processing including peat, coal, flax waste, sawdust and wood scrap, straw, buckwheat husks, and cardboard, tapes, films and paper machine sludge. The technology has been implemented over 1,500 onsite power generation projects in Russia working with major energy production companies such as Gazprom, Rosneft, Lukoil and Rostelecom as well as completing several projects for customers in the European Union, Middle East and United States. Due to the conflict in the Ukraine, ENEX is redomiciling and relocating key personnel to Turkey where it will complete an existing project and is expected to wind down its operations. CETY will develop additional ablative technology and expects to manufacture units in the United States. Sales and European distribution will be run out of a CETY office that has been established in Turkey.
CETY has global rights (except Russia and CIS countries) to design, build, manufacture, sell and operate renewable energy and waste recovery facilities HTAP10 and HTAP5 systems and other products and technologies the company expects to develop in the future.
The patented HTAP technology utilizes a higher temperature that uses a cleaner gas for the heating process and a more efficient biogas turbine. The units can be customized to produce hydrogen, natural gas, diesel oil and bio char in varying quantities which can be sold or used to produce electricity.
The company is targeting industrial and municipality solid waste, landfill waste, agriculture waste (straw, stems, plant biomass, manure, and crop wastage), and forestry waste from tree cuttings and shredded products.
The company is in the process of identifying projects domestically and internationally for the HTAP Biomass Reactor. The first project where the company expects to implement the HTAP10 technology with Vermont Renewable Gas to develop a biomass renewable energy processing facility. The project is planned for a location in Lyndon, Vermont to convert forest and agriculture biomass waste products to renewably generated electricity and BioChar fertilizer. The company expects to annually deliver up to 18,000 MWh of renewable electricity and 1,500 tons of BioChar. The Vermont Renewable Gas project is one of the many renewable energy processing facilities the company plans to commission.
ENEX HTAP 10 Waste to Energy Processing Plant.
The company established a wholly owned subsidiary called CETY Capital that the company expects will help the company finances its customers renewable energy projects producing low carbon energy. CETY Capital, when implemented, should add flexibility to the capacity CETY offers its customers and fund projects utilizing its products and clean energy solutions. The in-house financing arm is expected to support the company’s sales and build new renewable energy facilities. As of December 31, 2023, the company conducted no material operations in this subsidiary.
Clean Energy Initiatives in China
In 2021, the company acquired through its subsidiary, CETY Hong Kong, a liquefied natural gas trading operation called Jiangsu Huanya Jieneng (‘JHJ’) which sources LNG from large LNG producers and distributors and sells it to non-state-owned industries and downstream customers in mainland China.
CETY also plans to sell its waste heat recovery and waste to energy products in China as well as provide consulting services relating to the same to projects in China.
The JHJ team has more than 10 years of experience in the natural gas and clean energy industry and has maintained relationships and partners with many natural gas enterprises in China.
CETY HK
LNG Trading Operations
JHJ’s principal service is to source and supply LNG to industries and municipalities located in the southern part of Sichuan Province and portions of Yunnan Province. The LNG is principally used for heavy truck refueling stations and urban or industrial users in areas that do not have a connection to local LNG pipeline systems. The company purchases large quantities of LNG from large wholesale LNG depots at fixed prices which are prepaid for in advance at a discount to market. The company sells the LNG to its customers at prevailing daily spot prices for the duration of the contracts.
Either the company’s sources or customers arrange for delivery of the LNG.
JHJ traders are experienced LNG traders, familiar with the spot and future markets; and have relationships with the major users of LNG in the areas that the company serves. The company’s customers may be local or may be as far as 700km from each depot.
JHJ has established a supply of approximately 8,000 tons of LNG for distribution.
The company is able to purchase LNG at a significant discount from its suppliers because the company’s prepayments offer suppliers more certainty with respect to the sales of their inventory, address their cash flow issues, and allow them to better plan for production. The company’s downstream customers get better prices from the company because of its bulk buying power, ease of inventory management and cash flow.
Both the company’s suppliers and customers can reduce costs by using JHJ as a centralized procurement center and establishing professional logistics distribution based on stable supply and downstream demand.
The company does not expect the project to require additional investment from the company, JHJ or HHNG. The project is planning and constructing additional pipelines in the Heze area and is expected to generate cash flow by the first quarter of 2023. The company does not expect to make further direct minority investments in other pipeline operators as the company expects these acquisitions to take place through the company’s joint venture with Shenzhen Gas.
Engineering, Consulting and Project Management Services
Engineering. The company’s global engineering team supports the design, build, installation, and maintenance of the company’s Clean Cycle generators, supports the company’s technology customers and innovative start-ups with a broad range of electrical, mechanical and software engineering services. CETY has assembled a team of experts from around the globe to assist customers at any point in the design cycle. These services include design processes from electrical, software, mechanical and Industrial design. Utilization of CETY’s design services will provide the company’s customers with a complete end to end solution.
Supply Chain Management. CETY’s supply chain solution provides maximum flexibility and responsiveness through a collaborative and strategic approach with the company’s customers. CETY can assume supply chain responsibility from component sourcing through delivery of finished product. CETY’s focus on the supply chain allows the company to build internal and external systems and better the company’s relationships with its customers, which allows the company to capitalize on its expertise to align with the company’s partners and customer’s objectives and integrate with their respective processes.
Sales and Marketing
The company utilizes both a direct sales force and global distribution group with expertise in heat recovery solutions and clean energy markets.
CETY maintains an online presence through the company’s web portal and social media. The company also has established cross-sale agreements with synergistic technology providers promoting the company’s solutions to its respective customers. The company utilizes email campaigns to keep the marketplace abreast of the recent developments with its solutions. The company works with the municipalities to identify incentive programs that could utilize the company’s solutions.
The company’s application engineers assist in converting the opportunities into projects. The company provides technical support to its Clean Cycle generator clients and recently introduced waste to energy plants through providing maintenance and product support.
The company’s market focus is segmented by the engine heat recovery, waste to energy plants, engineering & procurement, and renewable energy trade, Wastewater treatment plants and boiler applications with excess heat.
The company’s experienced team of LNG traders identify producers and customers for the LNG trading business, as well as originate acquisition opportunities for the company’s Shenzhen Gas joint venture.
Suppliers
The company’s significant suppliers in the Waste Heat Recovery business include Powerhouse, Concise Instrument, and Grainger.
Competition
In China, the company’s NG trading operations compete with large state-owned LNG producers and importers such as Sinopec.
Patents
The company holds 16 patents in 6 countries and 28 pending applications in 8 countries, which were acquired from General Electric International relating to the company’s magnetic turbine technology.
Intellectual Property
As part of the company’s asset acquisition from General Electric International the company acquired an exclusive, irrevocable, sublicensable, limited transferable, royalty free, fully paid, worldwide perpetual license to develop, improve and commercialize Calnetix’s magnetic turbine in any Organic Rankine Cycle based application where heat is sourced from a reciprocating combustion engine of any type, except marine vessels, any gas or steam turbine systems for electrical power generation applications or any type of biomass boiler system.
The company has an intellectual property rights purchase and transfer agreement with ENEX for its pyrolysis system.
History
The company was founded in 1993. It was incorporated in 1995. The company was formerly known as Probe Manufacturing, Inc. and changed its name to Clean Energy Technologies, Inc. in 2015.
The Analyst Price Target shows the analysts’ low, high, and average target at a glance.
