Enersize has signed a profit sharing agreement with Beijing Foton Cummins

Translation of latest news into English: Enersize has with the company's Chinese partner Beijing Join Team as a contractual middleman and project execution partner signed a four-year revenue sharing agreement in addition to the existing installation agreement with Beijing Foton Cummins Engine Co. Ltd. (Beijing Foton Cummins "). The plant uses between 7,000-8,000 MWh / year, the savings are estimated to be 20-30%, of which Enersizes part of the total savings is estimated at approximately 50%.

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."

More Information: 

Christian Merheim, Chairman of the Board

Telefon: +46(0)708-182 853

E-post: christian.merheim@enersize.com   

Or (English only): 

Sami Mykkänen, CEO

Tel: +358 405 59 90 47

E-post: sami.mykkanen@enersize.com 

More from the Newsletter

Practical tips for keeping your compressed air in shape

The fact that compressed air driven tools and machines are cost-effective and easy to maintain might also be the underlying reason why the whole compressed air system can be so neglected.

Electricians are experts on electricity. They know which cables to use in different environments. They also have to understand the dimensions of the cables to be used and which regulations to follow during an installation, related to cable channels, pipes, ducts and connectors.

Read more »

Control Gap: When air compressors fight

This article discusses some unexpected discoveries that came about then compressed air system monitoring equipment was installed on some example systems.
The maintenance foreman of a local paint manufacturer had a morning ritual where he turned on his three compressors one-by-one at 6 am every morning like clockwork. He did so for as long as he could remember, since he started some 25 years ago.

Read more »


Enersize Oyj clarifies subscription for warrants of series 3/2023

Enersize Oyj would like to clarify, as there have been several questions, regarding the subscription for series 3/2023 from both shareholders and institutions. On January 27, 2023, the subscription price for the exercise of warrants of series 3/2023 was set at SEK 0.02 (corresponding to approximately EUR 0.002) per new share subscribed for through the exercise of the Warrants.

Läs mer »

Enersize Q3 2022 company Brief

Enersize’s Q3 company brief can be found on the company’s website enersize.com. Below is a translation of selected parts of the Q3-report originally published in Swedish on November 30, 2022, with the title “Enersize offentliggör delårsrapport för tredje kvartalet 2022”.

Läs mer »

Enersize signs Letter of Intent with US partner CTRL Systems

Enersize Advanced Research AB (“Enersize” or the “Company”) signs a Letter of Intent (“LOI”) with US partner CTRL Systems Inc. (“CTRL Systems”) where CTRL Systems will use Enersize’s Compressed Air Services SaaS-platform to provide energy optimization of industrial compressed air to the North and Central American market.

Läs mer »