SunSi Energies Inc. ("SunSi") (OTCQB:SSIE), an international manufacturer, seller and distributor of energy products and solutions, today announced that it has entered into a definitive agreement to install up to four of its proprietary, modular Organic Rankine Cycle systems ("ORC units") at the Zibo Qilin Fushan Iron & Steel Company ("Qilin"). The definitive agreement finalizes the terms set forth in the Letter of Intent previously announced by the Company in late 2012. Qilin, a steel producing company that is located in the Shandong province of China, is the subsidiary of a $28 billion entity.
The ORC units will create significant value through the use of enhanced heat transfer techniques to maximize heat recovery and efficiently convert waste heat directly into renewable electrical energy. TransPacific Energy, Inc., a SunSi subsidiary, determined that the Qilin plant can host four ORC units and generate up to 1.3 Megawatts of incremental electrical energy, annually.
In the first phase of the project, SunSi will install two ORC units that will generate approximately 650 Kilowatts of supplemental electricity. SunSi will retain ownership of the ORC units and sell the supplemental electricity generated back to Qilin at a price discounted from the price they pay to their local utility company to purchase electricity. The first two ORC units are expected to generate at least $600,000 in revenue annually for SunSi, for a twenty year period. Upon successful completion of the first phase, SunSi at its discretion can install two additional ORC units also generating 650 Kilowatts of supplemental electricity.
Richard St-Julien, SunSi's Chairman, stated, "We are very pleased to enter into this agreement with a company as prestigious as Qilin. We are confident that the successful implementation of this project will offer a tremendous testimonial to the value of our technology. This is an excellent opportunity to provide a strong, annuitized revenue stream for our Company while simultaneously mitigating the greenhouse emissions generated at this particular location. We believe the compelling economics, new energy generation and environmentally beneficial results at Qilin will help showcase and demonstrate that our proprietary technology can generate comparable results at thousands of similarly configured locations throughout the world."