Tim Angus, president and CEO of Thermal Energy. (Darren Brown, OBJ)

Custom energy and emissions reduction systems maker Thermal Energy International Inc. is partnering with a Chinese company to manufacture its systems and expand into the Chinese market.

The Ottawa-based company today signed a memorandum of understanding to develop a joint venture with the Jiangnan Boilers and Pressure Vessels Company Ltd. (JBPV) to deploy Thermal's energy recovery solutions, such as its FLU-ACE heat recovery system, in China.

JBPV, which is located in central China in the Jiangsu Province, serves the chemical fertilizer, medical, oil and chemical industries in China and has revenues of approximately $90 million a year.

"A joint venture with Jiangnan will provide Thermal Energy with substantial in-country strength in manufacturing, engineering, sales and marketing as well as access to existing business relationships needed to properly enter the very competitive Chinese marketplace," said Thermal Energy chief executive Tim Angus in a statement.

Mr. Angus said the company's relationship with JBPV would help Thermal build contacts with some of the largest pulp and paper manufacturers in China, as well as with hospitals, textiles manufacturers and the chemical fertilizer industry.

"JBPV also has the capacity to quickly develop a FLU-ACE pilot project in China which will provide us with a local technology showcase site to demonstrate the value our solutions can provide in energy savings and emission reduction, which are two main priorities for Chinese governments at all levels," added Mr. Angus.

The partnership is the second collaboration with a Chinese organization: last month, the company signed an agreement with the South China University of Technology in Guangzhou to establish a joint research and development facility, which will focus on industrial applications for Thermal's THERMALONOx nitrogen oxides removal technology.