Tecogen Acquires Balance of Plant Service Contracts in Canada

Rhea-AI Summary

Tecogen has announced the acquisition of balance of plant service contracts in Canada, significantly expanding their current agreements. Previously, Tecogen serviced only cogeneration units, but the new contracts include ancillary equipment, leading to a projected annual revenue increase of $400,000 to $500,000 for their Canadian service center. CEO Abinand Rangesh expressed satisfaction with the expanded services, highlighting the potential for sustained revenue growth and future expansion in Ontario.

Positive

• Projected annual revenue increase of $400,000 to $500,000 from new service contracts.
• Expansion of service scope to include ancillary equipment, enhancing the company's service portfolio.
• Potential for future growth and expansion in the Ontario market.
• Increased recurring revenue, which can provide more financial stability for the company.

Negative

• No specific data provided on the cost of acquiring new service contracts.
• Potential risks associated with the integration of new ancillary equipment services, which might increase operational complexity.
• Dependence on the Canadian market for this additional revenue stream, which could be risky if market conditions change unfavorably.

WALTHAM, MA / ACCESSWIRE / May 22, 2024 / Tecogen Inc. (OTCQX:TGEN) acquires balance of plant contracts in Canada. Currently Tecogen is servicing the cogeneration units but does not service ancillary equipment. This contract is an expansion of the existing agreements and will result in approximately $400,000 to $500,000 annually in additional revenue for our Canadian service center.

"I'm pleased to see that customers are choosing to expand the scope of services with us" said Abinand Rangesh, Tecogen's CEO. "This addition to our existing service offering in Canada allows us to not only increase our recurring revenue but sets us up well for future expansion in Ontario."

About Tecogen

Tecogen Inc. designs, manufactures, sells, installs, and maintains high efficiency, ultra-clean, cogeneration products including combined heat and power, air conditioning systems and high-efficiency water heaters for residential, commercial, recreational, and industrial use. The company's cost efficient, reliable, and environmentally friendly products for energy production nearly eliminate criteria pollutants and significantly reduce a customer's carbon footprint.

In business for over 35 years, Tecogen has shipped more than 3,200 units, supported by an established network of engineering, sales and service personnel throughout North America. Aggregate run hours on Tecogen's systems exceed 10 million hours. For more information, please visit www.tecogen.com or contact us for a free energy savings analysis.

Tecogen, InVerde e+, Ilios, Tecochill, Tecofrost, Tecopack, Tecopower and Ultera, are registered trademarks of Tecogen Inc.

Forward Looking Statements

This press release contains "forward-looking statements" which may describe strategies, goals, outlooks or other non-historical matters, or projected revenues, income, returns or other financial measures, that may include words such as "believe," "expect," "anticipate," "intend," "plan," "estimate," "likely" or "may" and similar expressions intended to identify forward-looking statements. These statements are only predictions and involve known and unknown risks, uncertainties and other factors that may cause our actual results to differ materially from those expressed or implied by such forward-looking statements. Forward-looking statements speak only as of the date on which they are made, and we undertake no obligation to update or revise any forward-looking statements.

In addition to the Risk Factors described in our Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q under "Risk Factors," factors that could cause our actual results to differ materially from past and projected future results include demand for our products and services, the availability of incentives, rebates and tax benefits relating to our products, changes in the regulatory environment relating to our products, competing technological developments, and the availability of financing to fund our operations and growth.

Tecogen Media & Investor Relations Contact Information:

Abinand Rangesh, CEO
P: (781) 466-6487
E: Abinand.rangesh@Tecogen.com

SOURCE: Tecogen, Inc.

View the original press release on accesswire.com

FAQ

What is Tecogen's projected annual revenue increase from the new service contracts in Canada?

Tecogen expects an additional $400,000 to $500,000 in annual revenue from the new service contracts.

What new services will Tecogen offer under the expanded contracts in Canada?

Tecogen will now service ancillary equipment in addition to cogeneration units.

How will the new service contracts affect Tecogen's business in Canada?

The new contracts are expected to increase Tecogen's recurring revenue and pave the way for future expansion in Ontario.

Who is the CEO of Tecogen and what was his comment on the new service contracts?

Abinand Rangesh is the CEO of Tecogen, and he expressed pleasure at the expansion of services, emphasizing the potential for increased revenue and future growth.

What is the significance of Tecogen's new service contracts for its investors?

For investors, the new service contracts signify potential for revenue growth and enhanced market presence in Canada, contributing to the company's financial stability.