IRVINE, CA – Clean Energy Technologies, Inc. (NASDAQ: CETY) has announced that its affiliate, Vermont Renewable Gas, LLC (VRG), is a recipient of a $1 million grant from the United States Department of Agriculture (USDA) under the Rural Energy for America Program (REAP). The grant will support the completion of the VRG – Lyndon 2.2-megawatt renewable energy facility in Lyndon, Vermont.
The USDA’s REAP initiative, backed by the Inflation Reduction Act, distributes funds through six quarterly competitions to support economic development and rural prosperity across the United States. VRG’s project was selected after a competitive review process, with its potential to provide renewable energy and environmental benefits to Vermont’s Northeast Kingdom being key factors.
Deputy U.S. Secretary of Agriculture Xochitl Torres Small highlighted that REAP grants and loans aim to reduce energy costs for farmers and small businesses, facilitate business expansion, and address climate change. The USDA emphasizes the role of these projects in increasing income for farmers and rural small businesses, growing their businesses, and lowering energy costs for American families.
The VRG – Lyndon facility, leveraging CETY’s HTAP Biomass Reactor technology, will convert waste biomass into renewable fuel gas and BioChar fertilizer, producing over 18,000 MWh of electricity and 1,500 tons of BioChar annually. The plant is expected to be fully operational within 12 months.
CETY’s CEO, Kam Mahdi, expressed the company’s gratitude for the USDA’s investment, which follows a previous $300,000 Wood Innovations Grant from the U.S. Forest Service. Mahdi noted the significance of federal support for the project’s success in the growing biomass renewable energy sector.
The project is part of CETY's broader strategy to integrate biomass solutions into its business, enhancing its heat recovery offerings and driving growth. The HTAP Biomass Reactor is a proprietary process that transforms organic waste into renewable power, BioChar, and other valuable products.
This news is based on a press release statement and indicates CETY's ongoing commitment to expanding its clean energy solutions portfolio and contributing to the biomass renewable energy sector.
InvestingPro Insights
While Clean Energy Technologies, Inc. (NASDAQ: CETY) has secured a significant $1 million grant for its Vermont Renewable Gas project, recent financial data from InvestingPro reveals some challenges for the company. Despite a remarkable revenue growth of 296.83% over the last twelve months as of Q2 2024, CETY's profitability remains a concern.
InvestingPro data shows that CETY is not profitable over the last twelve months, with an operating income margin of -25.05%. This financial strain is reflected in the stock's performance, with InvestingPro Tips indicating that CETY's stock has taken a significant hit over the last week, month, and six months.
The company's gross profit margin is weak, standing at just 7.94% for the last twelve months. This could potentially impact CETY's ability to fully capitalize on its innovative projects like the VRG – Lyndon facility, despite the recent grant funding.
It's worth noting that CETY operates with a moderate level of debt, which could be a double-edged sword as the company seeks to expand its clean energy solutions portfolio. While debt can fuel growth, it also increases financial risk, especially for a company not currently profitable.
These insights provide a more comprehensive view of CETY's financial health and market performance, complementing the positive news about the USDA grant. Investors interested in a deeper analysis can find 8 additional InvestingPro Tips for CETY, offering a broader perspective on the company's prospects in the evolving clean energy sector.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.