Mr. William Crossland reports

THERMAL ENERGY ANNOUNCES NEW PROJECT IN THE DAIRY INDUSTRY

Thermal Energy International Inc. has been commissioned to design and implement an extensive heat recovery project with a major U.S. dairy group.

The project, valued at $1.8-million, is the first between Thermal Energy and the group, as the dairy seeks to improve infrastructure and energy efficiency at its sites across America. The proposed turnkey solution will utilize Thermal Energy's recently acquired Heatsponge technology to heat boiler feed and process water as well as implementing a number of boiler room and steam system upgrades.

Thermal Energy acquired Boilerroom Equipment Inc. (BEI) together with its Heatsponge, Sidekick and Rainmaker technologies in June, 2018. This project applies Thermal Energy's food and beverage sector and turnkey project expertise together with BEI's boiler room expertise and Heatsponge economizer technology. It is the unique combination of Thermal Energy's and BEI's technologies and expertise that made this a successful project. Neither company could have delivered a project of this size and scope alone.

"This latest project highlights our growing capability to be a unique, one-stop shop for all of our customers' thermal energy efficiency needs by delivering the most effective solution using a variety of technologies and approaches. It also demonstrates our ability to grow our capabilities organically and through acquisition and illustrates how the synergistic benefits of BEI acquisition are contributing to the success of the company," said William Crossland, chief executive officer of Thermal Energy. "As we gain access to new technologies, such as BEI's Heatsponge, we are strategically placed to apply our engineering expertise in new ways and identify further savings opportunities for our customers and increase project value."

"Improved energy efficiency is required to deliver approximately half of the world's carbon emission reduction commitments, three times more than renewables. And with up to 50 per cent of industrial energy consumption lost as waste heat, the demand for solutions which reduce energy use while improving end-user competitiveness and profitability will continue to grow."

The project is expected to be completed and revenue earned within nine months.

About Thermal Energy International Inc.

Thermal Energy International is an established global supplier of proprietary, proven energy efficiency and emissions reduction solutions to the industrial and institutional sectors.

We seek Safe Harbor.