Press Releases
Clean Power signs Letter of Intent with Flukong Enterprise Inc.
to sell 500 hybrid engines
17 November 2008
Agreement will facilitate Clean Power's entry into the Chinese vehicles market
Clean Power Technologies Inc. (OTCBB: CPWE.OB; Frankfurt, XETRA:C1L), developer of a unique heat recovery and hybrid power system to reduce vehicle emissions, is pleased to announce that it has signed a letter of intent ("LOI") with Flukong Enterprise Inc. (TSX-V: FLG) ("Flukong") for a purchase order of up to 500 of Clean Power's steam hybrid engines to provide fuel savings of 40 per cent. or better in refrigerated trailer ('reefer') applications.
Flukong Enterprise Inc., based in Edmonton, Alberta, is a corporation focused on the development of new efficient technologies to reduce the wastage of natural resources, especially in North America and China. The LOI grants distributorship to Flukong for new customers in both territories and is renewable annually if Flukong can demonstrate inter alia its capacity to meet sales target of a pre-agreed number of reefer engines per year.
Clean Power's proprietary technology harnesses waste heat from the exhaust of internal combustion engines and converts it to steam for 'on demand' use either in the same 'primary' engine, or in a secondary vapour engine. In the reefer application this additional clean power is ultimately delivered as electricity to the compressor motor in the trailer-mounted refrigeration unit. Modern-day refrigeration units already include such a motor for use when parked at distribution depots whilst, in older units, the Company replaces the existing diesel engine with a far more efficient electrical motor.
Tests on reefer units at Clean Power's R&D facility in Newhaven, UK, have recorded a dramatic 40 per cent improvement in fuel efficiency, with a corresponding reduction in the level of emissions.
Under the terms of the LOI, Flukong would purchase up to 500 of Clean Power's hybrid refrigeration engines over an 18 month period, following their formal certification by US regulatory bodies, most notably the Environmental Protection Agency ("EPA"). The Company expects this transaction to generate approximately US$12,000,000 in gross revenue, taking into account the discount provided to Flukong as its first distributor.
Furthermore, upon commencement of the first delivery, Clean Power would grant an option for Flukong to purchase an additional 1,000 reefer engines per year for two years. To secure these terms Flukong has agreed to pay a US$84,000 deposit to Clean Power Technologies.
Abdul Mitha, President and CEO of Clean Power, said: "Our Letter of Intent with Flukong is the latest of a number of cooperative agreements that we have put in place this year with major reefer operators, including one of the USA's largest grocery chains and a trans-Canadian freight trucking company. This agreement is part of our plan to widen our global reach beyond North America as the rest of the globe catches up with strict economy, emissions and anti-idle legislation. We are hopeful that once our hybrid engine technology has been formally certified, we will be in a prime position to break into the vast Chinese and worldwide markets in this segment of the industry."
Mr Mitha added, "Reefer engines are the first and nearest-to-revenue application for Clean Power's exclusive intellectual property. The Company is planning similar heat recovery based hybrid-steam engines for broader markets such as commercial ships, pleasure craft and automobiles. Flukong's LOI is a validation of the potential which our technology offers".
Hubert Lau, President and CEO of Flukong Enterprise, said: "Through its deep involvement in the North American and Chinese supply chains, Flukong Enterprises is witnessing considerable demand for technologies that provide significant cost savings, contribute to a corporation's sustainable and social responsibilities and also aid compliance with ever stricter environmental legislation. Clean Power's unique steam hybrid system ticks all of those board-level boxes, most especially the new US idle-time regulations on truck and reefer engines, which we expect to be adopted globally within a few years. This Letter of Intent enables us to leverage our network of contacts to the mutual benefit of Clean Power, Flukong and the environment in the USA, Canada and, most importantly, China."
ABOUT CLEAN POWER TECHNOLOGIES
Clean Power Technologies is committed to developing hybrid fuel technology and alternative fuel for a range of vehicles, including locomotives, heavy trucks and light cars. The Company's proprietary technology significantly reduces pollution through its Clean Energy Separation And Recovery (CESAR) system, which takes otherwise wasted heat from the exhaust of a conventional combustion engine and modifies it through a heat recovery system to generate clean power for the vehicle.
Clean Power Technologies has cooperative research and development agreements in place with one of the USA's largest grocery chains, freight haulage companies and international engineering corporations.
Testing of the CESAR system on a Caterpillar C15 diesel engine has recorded a dramatic 40% improvement in fuel efficiency, with a corresponding reduction in the level of emissions. The Company is in advanced stage of the development of this engine, designed for the provision of auxiliary power and trailer refrigeration within the industrial vehicle and grocery truck industries.
The Company boasts a highly experienced engineering team, whose vision and technical capabilities are driving the implementation of this unique hybrid fuel technology. Clean Power Technologies operates out of its development facility in Newhaven, East Sussex, UK.
The Company is listed on XETRA on the Frankfurt Stock Exchange and is also traded on the OTC BB in the USA.
About CESAR
Clean Power's Clean Energy Separation And Recovery (CESAR) technology is designed to increase vehicle fuel economy and reducing emissions by capturing, storing and reusing otherwise wasted heat from the exhaust of a conventional combustion engine. A heat exchanger captures waste energy, which is then stored in the form of steam in an accumulator, for 'on demand' use either in the same 'primary' engine, or in a secondary vapour engine. Power can be produced solely by the secondary vapour engine even after the primary combustion engine has shut down.
The CESAR system can be used to power auxiliary truck systems, such as trailer refrigeration and cab cooling or heating, in regulatory 'no idle' and 'quiet' zones. In addition to initial truck applications, CESAR can be further applied in Clean Power's well developed passenger car programme and also in the locomotive and marine sectors.
ABOUT FLUKONG ENTERPRISE INC.
Flukong Enterprise Inc. focuses on the development and promotion of new, efficient technologies to reduce the wastage of natural resources, especially in North America and China.
Flukong grew out of the IT sector where its wholly owned subsidiary, Power Industry Inc., provides consulting services and products to control the use and wastage of electricity, paper and end-user time. More recently, Flukong has established an alternative energy division to broaden this environmental focus to technologies that improve the efficiency of existing energy resources - mainly oil and gas derived.
Flukong Enterprise's sustainable vision draws heavily on the earth-based culture and values of Canada's First Nations and Métis people, who continue to be significant shareholders.
Flukong Enterprise is based in Edmonton, Alberta, Canada.
For further information, please contact:
| Clean Power Technologies Inc. | |
| Abdul Mitha, President & CEO Clean Power Technologies Inc. 436-35 Avenue N.W. Calgary, Alberta Canada T2K 0C1 |
Tel: + 1 (403) 277 2944 UK mobile: +44 (0) 782 436 5198 |
| mithaa@shaw.ca | www.cleanpowertechnologies.com |
Media enquiries:
| Abchurch Communications Limited | |
| Justin Heath / Monique Tsang | Tel: +44 (0) 20 7398 7700 |
| justin.heath@abchurch-group.com | www.abchurch-group.com |