NEW YORK, April 20, 2012 (GLOBE NEWSWIRE) -- SunSi Energies Inc. ("SunSi") (OTCQB:SSIE), a provider of the specialty chemical trichlorosilane (TCS), today announced it has signed a binding letter of intent to purchase a 51% interest in TransPacific Energy, Inc. (TPE), a company with offices in Nevada and California that designs and sells energy systems which maximize heat recovery and convert waste heat into electrical energy.
TransPacific Energy is a high-tech corporation that designs, builds, owns, operates, sells and installs proprietary, custom made modular Organic Rankine Cycles (ORC) utilizing multiple environmentally sound and low global warming potential refrigerant mixtures. TPE's patent pending technology uses enhanced heat transfer techniques to maximize heat recovery and efficiently convert waste heat directly from industrial processes, thermal solar, geothermal biomass and landfill as well as other untapped heat into renewable electrical energy. In addition, TPE offers thermal storage technology for applications such as 24/7 electrical energy using solar, and geothermal as well as shaving load demand. Please visit www.transpacenergy.com to learn more about TPE technologies.
Renewable energy is energy that comes from natural resources which are renewable or naturally replenished. The renewable energy industry is expected to reach more than $250 billion by 2017. Worldwide initiatives and government mandates, including the 2009 American Recovery and Reinvestment Act, are driving the implementation and utilization of renewable and converted sources of energy and fuel.
Terms of the Letter of Intent
SunSi will acquire 51% of the common stock of TPE and will be paid in full with shares of SunSi's common stock. The transaction is scheduled to close no later than the end of May 2012; however, both parties expect the closing to occur within the next few weeks.
A Unique and Synergistic Transaction
Given the broad applications of TPE's technology in renewable green energy, SunSi believes the transaction will be synergistic for both companies for a variety of reasons including, but not limited to, the following:
- New and innovative technology broadens SunSi's reach in the green energy renewal arena.
- Establishes a U.S. presence and a new revenue stream for SunSi with high gross margin potential in a multi-billion dollar industry.
- The size of the market for the reduction of emissions is enormous and SunSi can open doors in China where 70% of the polysilicon producers must comply with government environmental guidelines.
- SunSi expects to establish market traction for TPE technology in China; with a $454 billion publically disclosed commitment by the Chinese government earmarked for renewable energy projects.
- Both parties can leverage corporate overhead to enable expansion of U.S. operations.
- SunSi management have a history of successful M&A and joint venture integration that maximizes the leverage of existing assets and joint opportunities.
- Both firms have a history of working with billion dollar entities.
- TPE's technology could enable companies to economically meet or exceed stringent environmental guidelines around the world.
TPE President, Anne Howard says "TPE is excited to team up with SunSi. SunSi will help TPE broaden its reach into the international marketplace so that globally more waste and untapped heat can be recovered, electrical energy produced, and fuel saved thus protecting our environment. This will reduce greenhouse gas emissions and industries' carbon footprints. Our combined technologies can help stimulate growth in the economic sector both nationally and internationally."
"We are thrilled to join forces with accomplished business and technology leaders such as the team of TPE," commented Richard St. Julien, Chairman of SunSi Energies, Inc. "SunSi will now offer innovative and critical renewable energy conversion systems that efficiently convert waste heat from industrial processes, solar, geothermal biomass and landfills directly into electrical energy. This partnership will provide us with U.S. based operations, diversify our customer pool, and position SunSi as a leading renewable energy company with significant technical expertise. Our Chinese operations and customer relationships will open new doors for TPE's products and enable us to significantly increase the value of the entire SunSi–TransPacific Energy enterprise."
"TransPacific brings tremendous value to SunSi. We believe there are numerous high growth revenue generating opportunities to further diversify SunSi's current business in the renewable energy industry and create value for SunSi shareholders," stated David Natan, CEO of SunSi Energies, Inc.
About TransPacific Energy, Inc.
TPE's core technology uses proprietary multiple component fluids that are environmentally sound, non-toxic and non-flammable. These mixtures are custom formulated to efficiently capture and convert heat directly from the heat source at temperatures ranging from 100ºF to 1000ºF. TPE's technology currently offers a broader range than other ORC systems which are limited to narrow temperature ranges between 200º F and 300º F. Other ORCs must use a binary system or secondary heat transfer loops to recover waste heat at higher temperatures that significantly lower heat recovery efficiency, output power, and increase cost. TPE's advanced technology does not use binary loops and also employs either air-cooled or water-cooled condensers as well as direct heat exchangers for heat recovery, www.transpacenergy.com
Furthermore other abundant untapped energy sources exist that potentially could produce electricity using TPE's ORCs. These sources include solar, geothermal, ocean, landfill and biomass.
About SunSi Energies Inc.
SunSi's goal is to become one of the world's largest producers of trichlorosilane ("TCS"). The Company plans to achieve this objective by acquiring and developing a portfolio of high-quality, scalable, strategically located TCS production facilities that possess a potential for future growth and expansion. U.S. based SunSi controls approximately 55,000 metric tons of TCS production in China. TCS is a chemical primarily used in the production of polysilicon, which is an essential raw material in the production of solar cells for photovoltaic (PV) panels that convert sunlight to electricity. TCS is considered to be the first product in the solar PV value chain before polysilicon, and is also the principal source of ultrapure silicon in the semiconductor industry. For further information regarding SunSi, please visit the company's website at www.sunsienergies.com.
Forward-Looking Statements
Except for statements of historical fact, the matters discussed in this press release are forward-looking. "Forward-looking statements" describe future expectations, plans, results, or strategies and are generally preceded by words such as "future," "plan" or "planned," "expects," or "projected." These forward-looking statements reflect numerous assumptions and involve a variety of risks and uncertainties, many of which are beyond the company's control that may cause actual results to differ materially from stated expectations. Some of the factors that could cause actual results to differ materially from the forward-looking statements contained herein include, without limitation: (i) the possibility that the transaction may not close, (ii) competitive viability of TPE's technology, (iii) our ability to leverage markets in China for the TPE product, (iv) integration issues following the acquisition, and (vi) other factors detailed in documents we file from time to time with the Securities and Exchange Commission, which are available at www.sec.gov.