Enersize announced on March 14, 2017 that the company entered into an agreement with Beijing Foton Cummins on the installation of Enersize's system for measuring and optimising compressed air systems. This project now continues into its second phase with the signed four-year profit sharing agreement.
The plant has an installed compressor capacity of just under 2MW and an annual consumption of approximately 7,000-8,000 MWh. Estimated savings are 20-30% and are based on the implementation of some of the savings opportunities that Enersize has identified. Should all identified savings measures be implemented, savings can be higher.
Join Team has an option to participate in some parts of the project financing, which may affect the distribution between Enersize and Join Team to a lesser extent. Enersized profit share of total savings during contract period is estimated at approximately 50%.
The agreement is structured as a framework agreement where the implementation of certain savings measures is conditional approval of the end customer. This can affect finally achieved savings. Enersize and Join Teams' share of the savings is greatest during the first two years of contract and subsequently declines.
Beijing Foton Cummins Engine is a Joint Venture between Beiqi Foton Motor, a former Enersiz customer, and Cummins, a US Fortune 500 company and a leading manufacturer of diesel engines.
Enersize will utilize its new patented technology for compressor optimization as an essential part of the efficiency optimisation work. Efficiency improvements are expected to be implemented in Q2 2018 and Q3 2018 with the target of starting invoicing in Q3 2018.
Christian Merheim, Chairman of the Board Enersize, comments:
"As we previously announced, we expected to be able to present more projects entering tjheir revenue sharing phase during Q2. It is therefore great to be able to present this new agreement. It is also very exciting that this project will benefit from our newly developed and patented method for compressor analysis and compressor optimization. "
Sami Mykkänen, CEO Enersize, comments:
"Business in China is first and foremost based on trust and it takes time to build up the necessary trust with customers. The compressed air systems are extremely important to the customers. If the compressed air system stops, the factory will stop. When we start working with the customers and it turns out that we can help them to get both a more stable and efficient system, it goes much faster and open the doors to other factories with the same owner. We have invested a lot of work in this and now we begin to see the results, both regarding future new customer agreements and also by accelerating the installation agreements into profit sharing."
Christian Merheim, Chairman of the Board
Telefon: +46(0)708-182 853
Or (English only):
Sami Mykkänen, CEO
Tel: +358 405 59 90 47