Shares in the penny stock of Turbine Truck Engines Inc. (OTCBB: TTEG), a technology company focused on the development, manufacture, and distribution of its new energy efficient and environmentally-friendly products, are up 242.86% thus far in 2012. TTEG gained 7.14% in the last trading session to close at 12 cents. TTEG share price has gained 25% since they announced that switching Chin Chou Industrial Co. from heavy oil to hydrogen as the fuel source for their steam furnace burners will generate a monthly cost savings of close to 50% or $42,500.
Last week, the Company announced that their joint venture with Energy Technology Services, Inc , Global Hydrogen Energy Holding Group Limited, completed an on-site cost benefit survey at the DeMing Ceramics Co. Ltd in Jinjiang, Quanzhou City, Fujian Province, China. The results of the survey concluded strong operational and financial viability for switching DeMing Ceramics Co. from heavy oil to hydrogen as the fuel for their furnaces.
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TTEG Stock Chart:
Market Cap: 7.67M
(Feb 14, 2012): 0.23
(Dec 28, 2011): 0.02
Avg Vol (10 day): 134,700
Shares Outstanding: 63.90M
% Held by Insiders: 15.22%
Under Global Hydrogen Energy’s Lease Program, they would receive monthly payments from the client based on actual monthly fuel cost savings realized as a percentage of the “original or baseline” average heavy-oil monthly consumption cost. For year 1 of the lease, the monthly payment received is 70% of monthly fuel cost savings.
In the case of DeMing Ceramics, with an estimated monthly fuel cost savings of $158,000, the joint venture would receive a monthly payment from DeMing Ceramics of $110,600. For years 2 through 5 of the lease, the customer’s monthly percentage payment to Turbine Truck Engines Inc.’s joint venture would still be based on savings from original consumption cost with the percent reducing annually as follows, 60%, 50%, 40% and 30% with year 6 and beyond maintained at 30% for ongoing maintenance of the system.
Turbine Truck Engines Inc. entered into a Contract of World Agency Agreement dated March 15, 2012 with Energy Technology Services Co., Ltd. granting TTEG full agency capacity worldwide to handle ETS’s energy related products, including hydrogen burning systems and other energy saving devices. The agency is exclusive for North America and non-exclusive for other world markets.
Under the terms of the Agreement, ETS will provide all products to Turbine Truck Engines Inc.’s sales channels, and will provide, plan, install & maintain all products and training. Turbine Truck Engines Inc. will be responsible for setting up its own sales and education system, organizing sales and promotional meetings and will report to ETS monthly. The Agreement is effective from March 1, 2012 through March 1, 2016.
Turbine Truck Engines Inc. must sell at least ten 200 M3/Hr hydrogen burning machines in the first year, and 20 or more machines for each of the subsequent years or ETS will have the right to terminate the Agreement. The Agency fees have yet to be determined.
Each machine will have an end user price of $750,000 and the Company will remit 50% of the total payment upon ordering and the balance will be due in full at port of Taiwan, after inspection. TTEG will be responsible for shipping costs.
Bottom Line: Great idea behind switching from Oil to Hydrogen and the financial savings involved. TTEG had no revenues for 2011 or 2010 so this joint venture agreement with ETS could finally be their ticket to putting up sme top-line numbers to begin to chip away at their Accumulated Defecit of $16.4 million.