Thermal Energy International Inc. announced that the company has received a purchase order from a major hospital for an initial 35% payment toward a heat recovery system with a total value of approximately $825,000. The condensing flue gas recovery system would be used to recover heat from three boilers on site at the hospital. The project is expected to be completed and the revenue for the full system earned over the next six months.

The system is expected to reduce the hospital's annual operating costs by approximately $200,000, resulting in a payback period of about four years. With this order, Thermal Energy's order backlog currently stands at approximately $4.4 million of which approximately $0.5 million is related to long-term contracts and is not expected to be reflected in revenue within the next 12 months. Thermal Energy includes in ‘order backlog' the value of projects in respect of which purchase orders have been received but have not yet been reflected as revenue in the company's published financial statements.