Company to deliver minimum of 300 WHE-DR engines to first customer over the next 24 months
LANCASTER, OH / ACCESSWIRE / April 22, 2014 / Cyclone Power Technologies Inc. (OTCQB: CYPW), developer of the all-fuel clean-tech Cyclone Engine, announced that its waste-to-power subsidiary, Cyclone-WHE LLC, has received an initial purchase order from Phoenix Power Group LLC for the delivery of approximately 300 Waste Heat Engines (the WHE-DR) over the following 24 months, an order valued at $1,000,000.
The binding purchase order covers the delivery of a minimum of 10 Generation 1 WHE-DR engines for field testing and pilot programs this year, at an average price of $10,000 per engine; a minimum of 65 Generation 2 engines in 2015; and a minimum of 230 Generation 3 engines early in 2016. The prices of Generation 2 and 3 engines will decrease significantly to reflect manufacturing efficiencies that the Company expects to achieve over the next 24 months as production processes become more automated and volume increases. Prices quoted for the base 22 horsepower WHE-DR engine do not include additional peripheral equipment, and are subject to change. Phoenix provided a $50,000 deposit for the first of these engines, and may terminate the PO if engines do not meet reasonable specifications or Cyclone-WHE fails to secure additional funding to assure products will be delivered this summer.
Phoenix will be using these WHE-DR engines to generate power from steam produced in their waste motor oil furnaces. Phoenix has distribution through the largest network of waste oil furnaces in the United States, covering over 60,000 units in the field at garages, car dealerships and other locations that collect oil from vehicles and other equipment, and use it to off-set heating costs in the winter. With this combined heat and power (CHP) system using the WHE-DR, these waste oil furnaces will be able to run year-round off-setting electricity expenses for the facility owners.
Christopher Nelson, President of Cyclone and Director of its WHE subsidiary, commented, "We have achieved a monumental milestone for Cyclone, Cyclone-WHE, and our shareholders – the conversion of a previous letter of interest into an initial purchase order valued at $1,000,000. This is a substantial commitment from Phoenix Power, who has the technology, resources and pipeline to get our products to market. We expect to deliver the first of these engines this summer, with sales margins that will provide considerable support to our ongoing development program."
Thomas Thillen, President of Phoenix, stated: "We are pleased with the progress we see, and thrilled to support this program by committing to the purchase of these engines. If Cyclone-WHE can deliver engines on time and to spec, which we are confident that they can, we fully expect that this purchase order will be the first of many to come."
Phoenix is Cyclone’s exclusive, worldwide licensee to utilize Cyclone’s engines to produce power from the clean combustion of waste motor oil, as well as other waste fuels and engine lubricants. The same WHE-DR engines that will be delivered to Phoenix will also be offered to other customers worldwide for applications that include biomass disposal in gasification units, landfill and farming methane flares, wood pellet stoves, and similar heat producing devices. Cyclone-WHE expects to start accepting additional purchase orders over the coming few months.
According to current estimates, the global waste heat recovery market will be valued at roughly $53 billion by 2018. Cyclone-WHE believes that its small-scale, efficient WHE-DR engine is well suited to carve out a substantial niche in this industry over the next five years.
About Cyclone Power Technologies
Cyclone Power Technologies is the developer of the award-winning Cyclone Engine - an all-fuel, clean-tech engine with the power and versatility to run everything from waste energy electric generators and solar thermal systems to cars, trucks and locomotives. Invented by company founder and Chairman Harry Schoell, the patented Cyclone Engine is an eco-friendly external combustion engine, ingeniously designed to achieve high thermal efficiencies through a compact heat-regenerative process, and to run on virtually any fuel - including bio-diesels, syngas or solar - while emitting fewer greenhouse gases and irritating pollutants into the air. The Cyclone Engine was recognized by Popular Science Magazine as the Invention of the Year for 2008, and was presented with two Society of Automotive Engineers’ AEI Tech Awards. Additionally, Cyclone was named Environmental Business of the Year by the Broward County (Florida) Environmental Protection Department. For more information, visit www.cyclonepower.com.
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Safe Harbor Statement
Certain statements in this news release may contain forward-looking information within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to the safe harbor created by those rules. All statements, other than statements of fact, included in this release, including, without limitation, statements regarding potential future plans and objectives of the company, are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. The company cautions that these forward-looking statements are further qualified by other factors. The company undertakes no obligation to publicly update or revise any statements in this release, whether as a result of new information, future events or otherwise.
Doug Petty, Vice President
SOURCE: Cyclone Power Technologies