Development of Midland, Texas, gasification facility continues.
Detroit-based Cirque Energy Inc. a developer of sustainable energy solutions focused on distributed generation projects and waste-to-energy solutions, has announced updates to its business strategy with the intent of enabling the company to bring its technology and products to market quicker, generate revenue sooner, and grow shareholder value, it says.
The company says it updated its business model and market strategy and is fully committed to implement these strategies at this time. The three central components of the company’s market strategy are:
- commercialization of deployment gasification unit (DGU) technology;
- development and delivery of combined heat and power (CHP) projects as an energy services company (ESCO); and
- strategic acquisitions of existing biomass power plant facilities with historical operating income and continuing revenue generation post acquisition.
Cirque says it continues to develop and enhance its proprietary DGU technology and expects to conduct final field testing and shakedowns of its first DGU units during the second quarter of this year. The company further expects to book sales of its first commercial projects in the second half of 2015, with installations of commercial DGUs before the end of 2015. The company is also continuing development of its previously announced 2.5 megawatt project in Midland, Texas, and is in discussions regarding several other commercial DGU projects.
Per its joint development agreement with the Northrop Grumman Corp., Falls Church, Virginia, Cirque has exclusive rights to all markets – outside of the federal government sector – for its DGU technology. Rising costs of energy and waste disposal, as well as environmental regulation, position a wide variety of retail, manufacture, service and municipal business enterprises to potentially benefit from the Company’s commercial DGU systems.
The U.S. market includes big box retailers, industrial, schools, municipalities, hospitals, etc. Potential customers include virtually any facility that utilizes a 200 KW or more electrical load and generates a sufficient waste stream to supply fuel to the system.
Emerging third world countries and nations in the Caribbean, Central and South America and Mexico represent a massive market potential, according to the company. Areas without developed electrical grid infrastructure, countries with high costs of fuels and rapidly growing waste management challenges also represent excellent market opportunities. With micro-grid capabilities, avoidance of cost for traditional fuels and waste conversion features Cirque’s system provides a cost effective and reliable source of energy for these areas, according to the company.
All of the company’s DGU systems will feature a starved air, updraft auger gasification system, syngas conditioning system, and automated controls provided by Cirque Energy. Final assembly of the DGUs will be performed by Northrop Grumman.
Cirque says it remains well-positioned to deliver clean energy combined heat power (CHP) and other technology solutions to industrial, commercial, municipalities, universities, schools, and hospitals customers through projects that will be developed, owned and operated by the Company. As an ESCO, the company will sell energy to its customers through various financial structures which will require little or no capital outlays by the customer, including:
- ESPC – Energy Savings Performance Contract; customer pay Cirque for energy which otherwise would have been paid to a utility company in exchange for guaranteed power savings.
- PPA – traditional Power Purchase Agreement.
- Services contract – energy purchased as a service, thereby allowing a customer to treat a project as “off-credit.”
- Lease – Cirque designs, builds, finances, and leases system to the customer.
Cirque ESCO projects will feature technology suitable for the customer. The company is currently in the process of developing an industrial project that will feature traditional natural gas CHP technology. When appropriate, Cirque’s ESCO business will serve as the primary project delivery mechanism for commercial and industrial DGUs.
So as to accelerate Cirque’s entry into the waste-to-energy market, the company says it is actively exploring acquisition opportunities – alone and with strategic financial partners – and is currently bidding on 150 megawatts (MW) of biomass power plant acquisitions. Any potential acquisition must satisfy several criteria in order to be considered by the company, including the target’s operating and financial history as well as plant conditions and future outlook for continued operations. To facilitate these acquisitions, Cirque has advanced its relationships with strategic financial partners to provide funding for these acquisitions.
Joseph L. DuRant, Cirque’s president, chairman, and CEO, states, “We are very excited to be focusing our energy and efforts on these three business priorities. The special combination of Cirque’s proprietary waste-to-energy technology, project finance capability, compelling value proposition, strong customer interest, and deeply talented management team provide us with a unique and timely opportunity to create significant shareholder wealth. We are very optimistic about the future of our company.”