Cyclone’s Waste-to-Power Subsidiary Receives Initial $1,000,000 Purchase Order for Waste Heat Engines from Phoenix Power G...
April 22 2014 - 8:47AM
Access Wire
Company to deliver minimum of 300 WHE-DR engines to first
customer over the next 24 months
LANCASTER, OH / ACCESSWIRE / April 22, 2014
/ Cyclone Power Technologies
Inc. (OTCQB: CYPW), developer of the
all-fuel clean-tech Cyclone Engine, announced that
its waste-to-power subsidiary, Cyclone-WHE LLC,
has received an initial purchase order from Phoenix Power
Group LLC for the delivery of approximately 300 Waste Heat
Engines (the WHE-DR) over the following 24 months, an order valued
at $1,000,000.
The binding purchase order covers the delivery of a minimum of
10 Generation 1 WHE-DR engines for field testing and pilot programs
this year, at an average price of $10,000 per engine; a minimum of
65 Generation 2 engines in 2015; and a minimum of 230 Generation 3
engines early in 2016. The prices of Generation 2 and 3 engines
will decrease significantly to reflect manufacturing efficiencies
that the Company expects to achieve over the next 24 months as
production processes become more automated and volume increases.
Prices quoted for the base 22 horsepower WHE-DR engine do not
include additional peripheral equipment, and are subject to
change. Phoenix provided a $50,000 deposit for the first of
these engines, and may terminate the PO if engines do not meet
reasonable specifications or Cyclone-WHE fails to secure additional
funding to assure products will be delivered this
summer.
Phoenix will be using these WHE-DR engines to generate power
from steam produced in their waste motor oil furnaces. Phoenix has
distribution through the largest network of waste oil furnaces in
the United States, covering over 60,000 units in the field at
garages, car dealerships and other locations that collect oil from
vehicles and other equipment, and use it to off-set heating costs
in the winter. With this combined heat and power
(CHP) system using the WHE-DR, these waste oil furnaces
will be able to run year-round off-setting electricity expenses for
the facility owners.
Christopher Nelson, President of Cyclone and Director of its WHE
subsidiary, commented, "We have achieved a monumental milestone for
Cyclone, Cyclone-WHE, and our shareholders – the conversion of a
previous letter of interest into an initial purchase order valued
at $1,000,000. This is a substantial commitment from Phoenix Power,
who has the technology, resources and pipeline to get our products
to market. We expect to deliver the first of these engines this
summer, with sales margins that will provide considerable support
to our ongoing development program."
Thomas Thillen, President of Phoenix, stated: "We are pleased
with the progress we see, and thrilled to support this program by
committing to the purchase of these engines. If Cyclone-WHE
can deliver engines on time and to spec, which we are confident
that they can, we fully expect that this purchase order will be the
first of many to come."
Phoenix is Cyclone’s exclusive, worldwide licensee to utilize
Cyclone’s engines to produce power from the clean combustion of
waste motor oil, as well as other waste fuels and engine
lubricants. The same WHE-DR engines that will be delivered to
Phoenix will also be offered to other customers worldwide for
applications that include biomass disposal in gasification units,
landfill and farming methane flares, wood pellet stoves, and
similar heat producing devices. Cyclone-WHE expects to start
accepting additional purchase orders over the coming few
months.
According to current estimates, the global waste heat recovery
market will be valued at roughly $53 billion by 2018.
Cyclone-WHE believes that its small-scale, efficient WHE-DR engine
is well suited to carve out a substantial niche in this industry
over the next five years.
About Cyclone Power Technologies
Cyclone Power Technologies is the developer of
the award-winning Cyclone Engine - an all-fuel, clean-tech
engine with the power and versatility to run everything
from waste energy electric generators and solar thermal systems to
cars, trucks and locomotives. Invented by company founder and
Chairman Harry Schoell, the patented Cyclone Engine is an
eco-friendly external combustion engine,
ingeniously designed to achieve high thermal efficiencies through a
compact heat-regenerative process, and to run on virtually any fuel
- including bio-diesels, syngas
or solar - while emitting fewer greenhouse gases
and irritating pollutants into the air. The Cyclone Engine was
recognized by Popular Science Magazine as the
Invention of the Year for 2008, and was presented
with two Society of Automotive Engineers’ AEI Tech
Awards. Additionally, Cyclone was named
Environmental Business of the Year by the Broward
County (Florida) Environmental Protection Department. For more
information, visit www.cyclonepower.com.
Follow Cyclone on Facebook:
http://www.facebook.com/CyclonePowerTechnologies
Safe Harbor Statement
Certain statements in this news release may contain
forward-looking information within the meaning of Rule 175 under
the Securities Act of 1933 and Rule 3b-6 under the Securities
Exchange Act of 1934, and are subject to the safe harbor created by
those rules. All statements, other than statements of fact,
included in this release, including, without limitation, statements
regarding potential future plans and objectives of the company, are
forward-looking statements that involve risks and uncertainties.
There can be no assurance that such statements will prove to be
accurate and actual results and future events could differ
materially from those anticipated in such statements. The company
cautions that these forward-looking statements are further
qualified by other factors. The company undertakes no obligation to
publicly update or revise any statements in this release, whether
as a result of new information, future events or otherwise.
Company Contact
Christopher Nelson
Tel: 954-943-8721
chris@cyclonepower.com
Phoenix Contact
Doug Petty, Vice President
Tel: 901-568-4007
doug@phoenixpowergroup.com
www.phoenixpowergroup.com
SOURCE: Cyclone Power Technologies