The purchase order and realization of the full revenue potential for this project is subject to negotiation of final contract terms but will allow Thermal Energy to immediately begin detailed engineering of this project for Kruger Products. Execution of definitive terms is expected within the next several weeks.
The purchase order was issued following the completion of the project development phase during which time a number of options and potential solutions were evaluated in close cooperation with the customer.
Fabrication and installation of the project will commence immediately after execution of definitive agreements. The project is expected to be completed over the next several quarters with approximately $4m in project revenue earned during this time. The project qualified under the Heavy Oil Consumption Reduction Program of the Agence de l’efficaci nergtique in Qubec, and Kruger Products will benefit from a $1.93m grant to support the project’s implementation.
Subject to execution of definitive agreements, in connection with the project Thermal Energy will design, fabricate and install the Flu-Ace heat recovery system on two paper machines which is expected to reduce consumption of fossil fuel at the mill by more than 20%, based on pre project engineering work performed by Thermal Energy and Kruger Products. This in turn is expected to lower the facility’s GHG emissions by 10,000 tonnes of CO2.
Frank van Biesen, vice president of technology at Kruger Products, said: “This very important project will significantly improve our energy efficiency and strengthen our environmental position. We are committed to an aggressive sustainability plan and this project addresses one aspect by significantly lowering our carbon footprint.”
