Tecogen (NASDAQ:TGEN) has issued a mid-year shareholder letter from its CEOs, John Hatsopoulos and Benjamin Locke.
As quoted in the press release:
2017 is shaping to be a strong year for Tecogen. Now that we’ve reached the half-way point, we wanted to take the opportunity to provide you with an update in advance of the release of earnings on August 10th. Details for the earnings call will be provided in an upcoming press release.
After starting off the year with our third consecutive quarter of positive earnings results, Tecogen continues to make progress. A great example came just this month when we announced an order for five InVerde e+ units to a pharmaceutical company in the San Francisco Bay area. The order is significant not only because our advanced microgrid system will lower both the facility’s energy bills and emissions profile, but it will also provide rock solid reliability and dependability. As we expand into new markets, this peace-of-mind becomes an increasingly valuable benefit to customers.
Considering new markets, we are expanding our reach into the indoor agriculture industry, most significantly cannabis, and entering wastewater treatment facilities via our TTcogen joint venture with our European partner, TEDOM. As yet, neither segment accounts for a significant amount of our sales, although TTcogen’s backlog is on the upswing.
Tecogen has already successfully completed several transactions into indoor farming. Just in June we announced the sale of two Tecochill DTx water chillers to a cannabis farm in Massachusetts. Prior sales include an STx chiller to a medical marijuana facility, also in Massachusetts, and two STx units to Cultivated Power in Colorado. Both transactions were in 2016. While cannabis has so far grabbed most of the headlines, leafy greens, herbs, and tomatoes also hold substantial promise. According to a study done by indoor farming software company Agrilyst, the amount of physical space dedicated to indoor farming globally is set to jump at least five-fold over the next five years with the potential to generate over $6 billion in incremental annual indoor farming revenue.
Turning to wastewater treatment, TTcogen has brought on board Walter Gray III as Director of Business Development to spearhead TTcogen’s development of biogas-powered CHP projects. He brings with him some fifteen years of experience in international project development, business development, and environmental finance in the utility scale renewable and distributed generation markets. TEDOM’s products have had great long term success penetrating the wastewater treatment market in Europe thanks to their ability to utilize biogas. There are hundreds, if not thousands, of wastewater treatment facilities in the US where the installation of CHP is technically and possibly economically feasible. We are excited about the potential that lies ahead.