Clean Energy Technologies, Inc. (NASDAQ: CETY)

Clean Energy Technologies, Inc. develops renewable energy products and solutions that target emission reduction and cost savings for industrial and municipal customers. The company focuses on waste heat recovery, waste to energy conversion, engineering and project management services, and natural gas trading operations in China. Its core offerings include the Clean Cycle TM generator based on Organic Rankine Cycle technology and the HTAP biomass reactor for pyrolysis based waste to energy projects. Clean Energy Technologies, Inc. operates primarily in North America, Europe and Asia, delivering turnkey energy solutions that generate electricity, renewable natural gas, hydrogen and biochar from waste streams.

The company generates revenue through the sale of its Clean Cycle TM generators and related waste heat recovery systems that convert industrial waste heat into electricity. Revenue also comes from the HTAP biomass reactor and associated waste to energy plants that produce electricity, renewable natural gas, hydrogen and biochar for customers. Engineering, procurement and construction services for power generation, waste to energy and heat recovery projects provide another stream of income. In China, the CETY HK segment earns margins from natural gas trading by purchasing gas at discounted wholesale prices and selling at prevailing spot rates. Additionally, the company may earn income from joint venture development fees and potential future ownership stakes in waste to energy power plants.

The company operates through the following segments: Clean Energy HRS & CETY Europe, CETY Renewables Waste to Energy Solutions, Engineering and Manufacturing Business, and CETY HK.

• Clean Energy HRS & CETY Europe focuses on waste heat recovery solutions that convert thermal energy from industrial processes into zero emission electricity using the Clean Cycle TM generator based on Organic Rankine Cycle technology. The segment provides containerized power plants that can be linked together to deliver up to one megawatt of electricity per unit and can be scaled with Enertime partnership to handle systems between one and ten megawatts. The Clean Cycle TM generator features a magnetic bearing turbine that eliminates oil lubrication reduces downtime and operating costs while delivering higher efficiency than comparable units. Over one hundred twenty one generators have been deployed in biomass waste to energy diesel electric turbine electric and industrial applications worldwide. This segment also offers engineering support and turnkey installation services for its heat recovery power plants.

• CETY Renewables Waste to Energy Solutions provides the HTAP biomass reactor that uses high temperature ablative pyrolysis to convert solid waste into electricity renewable natural gas hydrogen and biochar without requiring oxygen. The technology can process feedstock such as wood chips agricultural residue forestry waste and municipal solid waste and produces outputs that can be sold or used to power engines and turbines. The segment has installed the HTAP system at seven sites processing materials including peat coal flax waste sawdust wood scrap straw buckwheat husks cardboard tapes films and paper machine sludge. It is advancing a project with Vermont Renewable Gas to convert forest and agriculture biomass in Lyndon Vermont into up to eighteen thousand megawatt hours of renewable electricity and one thousand five hundred tons of biochar annually. The HTAP reactor offers near zero emissions modular design zero liquid discharge and zero solid waste residue while allowing flexible waste sourcing and customized product outputs.

• Engineering and Manufacturing Business delivers comprehensive design manufacturing and project management services for power generation waste to energy and heat recovery projects. The segment provides engineering procurement and construction support that covers concept development equipment sourcing fabrication installation and commissioning. It maintains a global team of electrical mechanical software and industrial design engineers who assist customers at any stage of the design cycle. Supply chain management services allow the company to assume responsibility from component sourcing through delivery of finished product while aligning with partner objectives. This segment also operates in house electro mechanical assembly and testing capabilities to ensure product quality and compliance with industry standards.

• CETY HK conducts natural gas trading operations in China through its subsidiary Jiangsu Huanya Jieneng which sources liquefied natural gas from large wholesale depots and sells it to industrial and municipal customers in southern Sichuan and parts of Yunnan. The business purchases gas at fixed discounted prices with prepayments and resells at prevailing daily spot prices aiming for margins substantially higher than competitors. CETY HK also holds a convertible note investment in Heze Hongyuan Natural Gas co that supports pipeline construction linking local users to the national grid. The segment is pursuing a planned joint venture with Shenzhen Gas to acquire natural gas pipeline operator facilities in southwestern China subject to definitive agreements and future financing. Macro economic factors such as falling natural gas prices and reduced industrial demand have delayed the commencement of the Shenzhen Gas joint venture until conditions improve.

Clean Energy Technologies, Inc. competes in the waste heat recovery and waste to energy markets where larger players such as ORMAT Exergy TAS and Turboden dominate organic rankine cycle installations and companies like Hitachi Zosen Inova Suez Veolia Ramboll Group Covanta and China Everbright International lead waste to energy projects. The company differentiates itself by focusing on small and mid sized projects offering modular containerized systems that reduce installation time and cost. Its Clean Cycle TM generator claims higher efficiency than comparable units due to magnetic bearing technology that eliminates oil lubrication and reduces maintenance. The HTAP biomass reactor provides a near zero emission pyrolysis solution that avoids the costly pre treatment and pollutant issues associated with traditional incineration. These technical advantages combined with a global engineering team and in house manufacturing give Clean Energy Technologies, Inc. a niche position in the renewable energy sector.

The company serves a diverse customer base that includes industrial manufacturers municipal utilities waste treatment facilities and energy project developers. Specific customers named in the filing are Gazprom Rosneft Lukoil and Rostelecom for HTAP based waste to energy projects in Russia and other regions. Vermont Renewable Gas is identified as a partner for a planned biomass renewable energy processing facility in Lyndon Vermont. In China the NG trading business supplies natural gas to heavy truck refueling stations and urban or industrial users in southern Sichuan and parts of Yunnan. Additionally engineering and project management services are provided to municipal and industrial customers seeking turnkey power generation waste to energy and heat recovery solutions.