October 17, 2013
ForceField Energy Well Positioned to Benefit from the Lucrative Alternative Energy Market
U.S.-based ForceField Energy Inc. (NASDAQ – FNRG - $5.32) operates in two multi-billion dollar segments of the alternative energy arena: LED lighting distribution and as a renewable energy producer through its proprietary waste heat recovery system. Given its current positioning the company could emerge as one of the fastest-growing and most profitable firms of its kind.
The Company serves as the exclusive North American, Central and Latin American distributor of one of the leading LED (lighting emitting diode) manufacturers in the world. The LED market is booming and the total solutions-based approach in which ForceField has engaged, has resulted in $125 million in bid proposals and potential revenue over the next few years, via signed contracts, Letters of Intent, official bids, etc.
It is easy to see why the LED market is growing so quickly and why ForceField’s clever approach is a no brainer for is customers including Fortune 500 companies. Across the globe incandescent bulbs are being phased out and replaced by LED lights which are LED lights are considered “green” due to the absence of dangerous chemicals and the substantial reduction in energy consumption of 50-75%. As a result of the LED light directional output, LED lights can provide better directional light than incandescent or fluorescent bulbs. Plus, the payback (ROI) on commercial lighting replacements with LED is very short. Given these factors, industry estimates suggest that the replacement market worldwide represent a $1 trillion opportunity.
Recently, for example ForceField signed a Letter of Intent with utility company in Costa Rica. The Company expects to enter into a final contract shortly that will generate in excess of $20.0 million in revenue over a 10 year period. The Company gained visibility on this project due to its innovative financing techniques offered to the utility company coupled with a high quality and competitively priced state of the art and energy efficient LED streetlight. Their novel financing approach substantially reduces customers’ upfront costs and enables ForceField to generate very significant revenue over a multi-year timeframe, thus maximizing earnings and cash flow potential.
On the renewable energy side of the business, ForceField’s 51%-owned Transpacific Energy Inc. division offers a proprietary and innovative refrigerant system that is transforming the waste heat recovery segment of the $500 billion renewable energy market. The company’ Organic Rankine Cycle (ORC) is able to capture untapped waste heat above 500 degrees Fahrenheit, which accounts for the majority of the waste heat and convert it into energy with no dangerous greenhouse gas emissions. None of the company’s competitors can transform energy beyond the 500 degree mark. Interestingly, in the U.S. alone, 47,500 factory smokestacks account for 75% of untapped waste heat above 500 degrees.
The ability for any industrial facility to convert high temperature waste heat into electricity solutions in a “green manner” is a huge and unique opportunity. The value of the wasted heat in the U.S is worth $75 billion alone. Since the ORC makes any project profitable, ForceField has lined up the sale of 2 ORC units and a related $12 million multi-year deal. Plus, 2 additional units sold by TPE to billion dollar entities prior to its acquisition by the Company are in the process of being built and will serve as great reference accounts. Meanwhile, management has been fielding numerous requests for bids and other inquiries.
Not only are customers and prospects taking notice of ForceField Energy’s numerous, big-ticket wins in the energy industry, but with the recent migration of the company’s stock trading to the NASDAQ stock market, attention on the company is greater now than ever before. At the rate management is securing new business, investors could see tens of millions in recorded revenue in 2014 with significant growth thereafter and major increases in the stock price as ForceField emerges as a leader in its space.
For more information, refer to our previous sponsored FNRG Reports, Updates and Hot Topics by visiting www.GoldmanResearch.com
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Senior Analyst: Robert Goldman
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