Thermal Energy International Inc.
TSX VENTURE : TMG

Thermal Energy International Inc.

August 02, 2005 06:00 ET

Thermal Energy and Johnson Controls to Deliver Heat Recovery System for an East Coast Pulp and Paper Company

OTTAWA, ONTARIO--(CCNMatthews - Aug. 2, 2005) -

Innovative project to save $ millions in energy, reduce emissions

Thermal Energy International Inc. (TSX VENTURE:TMG) http://www.thermalenergy.com is pleased to announce it has been awarded a contract to supply a FLU-ACE® heat recovery system to Johnson Controls' (NYSE:JCI) as part of their multi-million dollar energy efficiency project for one of their customers, an Eastern Canada pulp and paper company.

The value of the contract to Thermal Energy is in the range of $1.5 to $2 million. Work on the project is to commence immediately, with installation of the FLU-ACE® system occurring over the next 10 to 12 months.

"This will be the largest FLU-ACE® contract to date for Thermal Energy and represents a tremendous breakthrough for our company into a major industrial market." said Thermal Energy President and CEO Tim Angus. "We placed a priority on entering the pulp and paper industry and through the excellent efforts and support of Johnson Controls we have now achieved this important goal."

Thermal Energy's FLU-ACE® technology recovers waste heat from paper machine dryers, industrial ovens, boilers, incinerators, cogeneration and process heaters, sometimes providing a complete smokestack replacement, while removing harmful pollutants, and returning "free" clean hot water for industrial processes. FLU-ACE® also provides an attractive return on investment by significantly reducing fuel consumption and generating certifiable emissions credits.

Thermal Energy's detailed engineering evaluation has conclusively confirmed that the project will reduce the consumption of fossil fuels at this plant saving millions of dollars. It will also deliver significant environmental benefits, equivalent to permanently removing 1,840 cars from area roads. This includes annual emission reductions of 8,350 tons of carbon dioxide (CO2), 92 tons of sulphur dioxide (SO2) and 16 tons of nitrogen oxides (NOx).

"We are pleased to be moving forward on this project with Thermal Energy," said Alex A. Molinaroli, Vice President and General Manager for Johnson Controls. "We have worked very hard to bring innovative cost-saving solutions to the pulp and paper industry and the FLU-ACE® technology helps make that possible."

This contract stems from a Letter of Intent (LOI) received by Thermal Energy from Johnson Controls on March 8, 2005. Under the LOI, Thermal Energy has already completed preliminary and detailed engineering evaluations for Johnson Controls which confirmed the projected costs and estimated savings to be derived from the FLU-ACE® implementation. Johnson Controls subsequently proposed a technical solution to their customer which was accepted.

Thermal Energy's detailed engineering evaluation also confirmed that in addition to reducing the consumption of fossil fuels at this plant, the project will also deliver significant environmental benefits, equivalent to permanently removing 1,840 cars from area roads. This includes annual emission reductions of 8,350 tons of carbon dioxide (CO2), 92 tons of sulphur dioxide (SO2) and 16 tons of nitrogen oxides (NOx).

About Thermal Energy http://www.thermalenergy.com Thermal Energy (TSX VENTURE:TMG) is an environmental and energy technology company established in 1986. Headquartered in Ottawa, Canada, TMG is a designer, developer, fabricator, and supplier of proprietary and patented environmental compliance (air) and energy conservation, renewable energy products and technology solutions. Thermal Energy is a fully accredited professional engineering firm, and offers advanced process and applications engineering services. FLU-ACE® is a registered trademark of Thermal Energy.

Johnson Controls, Inc. is a global market leader in automotive systems and facility management and control. In the automotive market, it is a major supplier of integrated seating and interior systems, and batteries. For non-residential facilities, Johnson Controls provides control systems and services including comfort, energy and security management. Johnson Controls (NYSE:JCI), founded in 1885, has headquarters in Milwaukee, Wisconsin. Its sales for 2004 totalled $26.6 billion. For more information on Johnson Controls, Inc., visit the company's Web site at www.johnsoncontrols.com.

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