Disclaimer: The below assessment is provided for informational purposes only and is not meant as a solicitation to buy or sell any securities related to the subject of this paper. All views and interpretations prescribed in this assessment are those of the author without communication or review of the company in question. This is a personal interpretation of the information provided by Clean Energy Technologies, Inc. This is not a recommendation to buy or sell securities related to ticker CETY.
Clean Energy Technologies, Inc. designs, builds, and markets clean energy products focused on energy efficiency and environmentally sustainable technologies. The Company’s principal product is the Clean Cycle TM generator, offered by Heat Recovery Solutions, or HRS http://www.heatrecoverysolutions.com. The Heat Recovery Solutions system captures waste heat from a variety of sources and turns it into electricity that users can use or sell back to the grid. CETY’s proven cutting-edge technology allows any commercial or industrial heat generators to boost their overall energy efficiency with no fuel, no pollutants, and virtually no maintenance. Company’s engineering and manufacturing resources support its heat recovery solutions business, as well as continuing to support other Clean Energy emerging growth companies with their technologies. CETY is positioned to become a worldwide leader in the ever expanding energy efficiency market. (https://www.otcmarkets.com/stock/CETY/profile)
Initial Company Explanation
This is a highly technical company focused on engine and power generation technology used to capture energy not used through typical mechanical or chemical actions. Breaking that down even further and oversimplifying it, think of the engine of your car. The internal combustion engine had a chemical reaction which initiates mechanical operation within the combustion chamber of the piston cylinder, which in turn, through many additional mechanical actions, turns the tires and propels the car forward. Throughout this process, waste energy is created in the form of heat. This heat can have a negative impact on your car’s ability to function, which is why it comes equipped with a radiator. The radiator is a closed water system which circulates around the engine to remove heat and prevents your car from overheating. Cool water is pumped into the engine, and hot water is pushed into the radiator to cool. That hot water is essentially wasted energy. It was created as a byproduct of your cars engine normal function, which unfortunately goes unused.
But, what if you could use that energy? In the case of your car, it doesn’t add much; however, in a more extensive system, the return on investment could be significant. And that’s what Clean Energy Technologies is after. Installation of hot water energy recapture technologies encompasses the primary product line associated with CETY.
The value proposition for product consumers is easily explained through an expression of the technology’s capacity and the current price of kilowatt per hour. The US national average price for 1 kWh (kilowatt-hours) is $.1318; that may not seem like much however, we’ve all seen the electric bill. In 2017 the average annual kWhs used was 10,399, meaning the average monthly bill was somewhere around $112.00 a month. Now that we have that as a baseline, let’s take a look at CETY waste heat recapture generator. Each unit, operating at optimal capacity, can produce 140kW an hour. If the optimal conditions were maintained for a year, the maximum output for each individual system would be enough to power 117 homes or $156,000 worth of energy either sold to the power grid or used to power whatever facility the system is attached to.
The value proposition for investors revolves around the leasing of the company’s proprietary technology. So far this year, CETY has established leasing agreements for over $3.4 million over the next 10 years, which may work out to roughly $340,000 in annual revenue. Continued company growth is dependent on cost-effective clean energy production and growth within the market.
The technical application for this technology is limited to industries where excessive heat is created as a byproduct of operation and uses a closed water system to radiate that heat. As already demonstrated by current leasing agreements, this technology is a perfect fit for power grid support as an addition to diesel-generated power.
From a technology standpoint, CETY can capitalize on near-frictionless barring assembly, which in conjunction with existing microturbine technology to produce a cost-effective strap on to existing power generation systems. It is unclear at this time whether this company has reached the balance point where revenue exceeds the cost of operations; however, as demand for clean energy increases, the potential for this company will increase as well.
This concludes the initial analysis of Clean Energy Technologies, Inc. (OTCQB: CETY).To provide feedback on this Analysis, please visit Random Analysts Feedback