SEATTLE, Jan. 21, 2016 /PRNewswire/ -- ClearSign Combustion Corporation (NASDAQ: CLIR) an emerging leader in combustion and emissions control technology for industrial, commercial and utility markets, today released its annual letter from Chief Executive Officer, Stephen E. Pirnat, to the Company's shareholders.
Dear ClearSign Shareholder,
As CEO and a fellow shareholder, I believe this is an exciting time to be an investor in ClearSign. The fiscal 2015 year was transformative for the Company as we moved from development into initial commercialization in multiple vertical markets. While the applications for our technologies focus on the combustion systems that power nearly two-thirds of the energy used in U.S. manufacturing, we are initially focused on three segments: enhanced oil recovery, refinery and petrochemical, and commercial boilers. We were able to enter the first two verticals this year, a significant accomplishment when you look at the size of the operators and the time it usually takes to enter these facilities. For the third vertical - commercial boilers - we foresee a licensing model and we have been engaged in ongoing discussions with a number of parties.
Our team accomplished a great deal in this past year and I want to thank them for their hard work and dedication. Some notable accomplishments included:
- Validated our Duplex™ Technology in a full-scale field trial
- Received our first commercial order for Duplex Technology
- Added senior R&D talent to accelerate research
- Validated the performance of our first Once Through Steam Generator (OTSG) unit
- Installed and operated our first unit in a refinery
- Entered into five field trial agreements for Duplex Technology in addition to the initial field development agreement from 2014
- Completed a common stock offering of $17.5 million
These accomplishments mark important milestones in ClearSign's development and were absolutely critical to position the Company for our next phase of growth. This phase will include broad-based market acceptance in our initial market verticals, a corresponding ramp in revenue, and initial commercialization into new market verticals.
Interest continues to build for ClearSign's Duplex Technology, and I am impressed by the quality of demand we are witnessing. As many of you know, we are currently managing multiple field installations at refineries and production operations throughout North America. We continue to make progress with these installations and we are encouraged by our customers' enthusiasm and willingness to work with us while we optimize our solution. We anticipate that we will be able to progress with new customers once we are able to demonstrate completed field installations. To that end, we have been focused on these field installations and we anticipate this continuing through the first quarter of 2016.
Our customers have a strong economic incentive to incorporate Duplex Technology into their operations. Faced with the high capital and operating costs of legacy NOx control technologies such as Selective Catalytic Reduction (SCR), customers are telling us they face difficult operational decisions. Without the use of Duplex Technology, our customers face the possibility of fines or other regulatory or operational costs. We believe that ClearSign's technology offers the only solution for certain customers that meets (and in some cases, exceeds) environmental requirements, but does so for a fraction of the cost of legacy technologies. In some cases, we believe that our Duplex Technology could actually reduce operating costs due to improved fuel efficiency or reduction of maintenance due to preventing flame impingement. Our customers seem to recognize that an investment in Duplex Technology is in their own economic self-interest and they have been highly motivated to accelerate its development.
In the field, our customers are highly engaged and have dedicated significant resources and operations staff to prioritize the implementation of what they see as game-changing environmental technology into their operations. We have benefitted greatly from their practical expertise and our installations are on schedule as we meet expectations for performance and safety. The knowledge we gain from these initial installations will lay the groundwork for efficiencies in future rollouts.
I also want to remind our shareholders that, while the price of oil is declining, the demand for clean air is increasing. While our upstream production customers are experiencing a decline in revenue, regulatory requirements are becoming even stricter and the need for a truly cost-effective solution is more acute than ever.
Downstream, our refinery customers are the bright spot in the energy sector; their input costs of crude oil have decreased and demand for their product remains steady, as do profit margins. As with our upstream customers, the demand for effective environmental solutions that do not negatively impact operations is very strong.
There currently are six Duplex Technology field test projects. Two of these are OTSGs in the enhanced oil recovery industry, and four are process heaters in the oil refining industry. Three of these projects are in a design phase and three are in the field work stage. Our fieldwork has been successful to date in registering NOx emission levels within the customer and relevant regulatory body and specifications. Once these projects are installed, commissioned and operating to the customers' satisfaction, we will receive payment.
Anticipating the ramp in demand, we continue to add resources internally to support our business development, field engineering, project management and research and development efforts. As announced recently, we have opened a field engineering and sales office in Tulsa, which is the largest industrial cluster of traditional industrial combustion in the U.S. We have also promoted Dr. Roberto Ruiz to the role of Chief Operating Officer, hired additional combustion technology experts and formed dedicated research and development teams strengthen our focus on accelerating the development of market applications for our Electrodynamic Combustion Control (ECC) technology, as well as a separate team focused on research and development of the next generations of our Duplex product.
We remain excited and committed to making ClearSign a truly great company, partner, investment and employer, and I would like to thank each of our shareholders for their ongoing interest and support.
Warmest regards, Steve Pirnat Chairman and CEO ClearSign Combustion Corporation
About ClearSign Combustion Corporation ClearSign Combustion Corporation designs, develops and markets technologies that drive to improve key performance characteristics of combustion systems, including emissions and operational performance, energy efficiency and overall cost-effectiveness. Our patent-pending Duplex™ and Electrodynamic Combustion Control™ platform technologies enhance the performance of combustion systems in a broad range of markets, including the chemical, petrochemical, refinery, power and commercial boiler industries. For more information, please visit www.clearsign.com
Cautionary note on forward-looking statements This press release includes forward-looking information and statements within the meaning of the Private Securities Litigation Reform Act of 1995 and the provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Except for historical information contained in this release, statements in this release may constitute forward-looking statements regarding our assumptions, projections, expectations, targets, intentions or beliefs about future events that are based on management's belief, as well as assumptions made by, and information currently available to, management. While we believe that our expectations are based upon reasonable assumptions, there can be no assurances that our goals and strategy will be realized. Numerous factors may affect our actual results and may cause results to differ materially from those expressed in forward-looking statements made by us or on our behalf. Some of these factors include the acceptance of existing and future products, the impact of competitive products and pricing, general business and economic conditions, and other factors detailed in our Annual Report on Form 10-K and other periodic reports filed with the SEC. We specifically disclaim any obligation to update or revise any forward-looking statement whether as a result of new information, future developments or otherwise.
SOURCE ClearSign Combustion Corporation