Tecogen : We are running out of power! A company with compelling answers to our insatiable need for power
April 22, 2024 at 12:46 pm EDT
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We are running out of power! A company with compelling answers to our insatiable need for power
Providing on-site, power, heating, and cooling
Our power grid is aging. Data centers, solar, electric cars and electric heating have stretched it to breaking point. Lack of power is plaguing businesses across the country. One controlled environment agriculture (CEA) startup was ready to build a new facility in Florida. At the last minute, the electric utility told them, "We will have enough power for you in 12 to 18 months". Waiting a year was not an option. Grocery stores were ready to buy their leafy greens and finding a new location was next to impossible. Solar was not going to work since they operated 24/7. It would also take a solar array the size of multiple football fields to cover their load. The CEA startup needed a creative solution to open on time.
A technology company in Massachusetts had the answer. Tecogen designs and builds clean on-site power, heating, and cooling equipment. The company has sold more than 3,200 units that have run reliably for 10+ million hours.
In the case of the CEA startup, Tecogen's proprietary chiller
Tecogen Inc OTCQX:TGEN
Revenue: $25m
was the creative solution. It uses only 2KW of power
compared to 300KW for an equivalent electric chiller. It runs Insider Holdings: 40%
on cheap natural gas and is up to twice as efficient as the
Market Cap: $17m
utility. It also only costs half as much to operate as an
electric chiller. With Tecochill, the CEA startup launched on
time and took control of its energy future.
Over the last year, there have been three changes that could give Tecogen a tailwind for growth
Service - A 20% growth in Tecogen's high margin service segment. Last year, the company acquired 200 additional service contracts. Now long-term recurring cash flow covers greater than 60% of fixed costs.
Marketing - New project developer relationships, online marketing and a broader geographic focus has led to Tecogen being specified on multiple power constrained projects. These are expected to close in 2024.
Tax credit - Tecogen's equipment qualifies for a 40% Federal Investment Tax credit in 2024.
Utility rates have risen across the country, in some places 30% or higher, so Tecogen customers are seeing higher savings than ever. Tecogen has the right solutions to meet our insatiable need for power.
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Tecogen Inc. published this content on
22 April 2024 and is solely responsible for the information contained therein. Distributed by
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22 April 2024 16:45:05 UTC.
Tecogen Inc. designs, manufactures, markets, and maintains ultra-clean cogeneration products. The Company includes natural gas engine-driven combined heat and power (CHP) systems, chillers, and heat pumps for multi-family residential, commercial, recreational, and industrial use. The Company operates through three segments: Products, Services, and Energy Production. The Products segment designs, manufactures and sells industrial and commercial cogeneration systems. The Services segment provides operations and maintenance services and turn-key installation for its products under long-term service contracts. The Energy Production segment, which installs, operates, and maintains distributed generation electricity systems that it owns and sells energy generated by such systems in the form of electricity, heat, hot water, and cooling to its customers under long-term energy sales agreements. The Company's products are sold with its patented Ultera emissions technology.
TECOGEN INC. 
