Clean Energy Technologies Inc (NASDAQ: CETY) is a clean energy company that develops and sells waste heat recovery systems and waste-to-energy products in the United States while operating a natural gas trading business in China through its subsidiaries. Revenue comes from two distinct streams: equipment sales and technology licensing for Organic Rankine Cycle (ORC) waste heat recovery units in the U.S. market, and physical natural gas trading in Sichuan and Yunnan provinces in China through its JHJ subsidiary. The China natural gas segment purchases LNG from wholesale depots at fixed, prepaid prices and sells to customers at prevailing daily spot prices, targeting gross margins of 20 to 30 percent against what the company estimates are 1 to 5 percent margins for competitors. U.S. ORC competitors include ORMAT, Exergy, TAS, and Turboden, which together hold over 75 percent of installed ORC capacity. The waste-to-energy market is served by Hitachi Zosen Inova, Suez, Veolia, Covanta, and others. As of the 10-K filed April 14, 2025, the company faced Nasdaq non-compliance notices on both minimum bid price and annual shareholder meeting requirements.

Revenue model

Two revenue streams: (1) equipment sales and technology licensing for ORC waste heat recovery systems in the U.S., with professional engineering services attached; (2) physical natural gas trading in China, buying LNG from wholesale depots at prepaid fixed prices and selling at daily spot prices, targeting 20 to 30 percent gross margins per the FY2024 10-K filing.

Products and services

Organic Rankine Cycle (ORC) waste heat recovery and waste-to-energy systems for small and medium industrial installations in the U.S.; ENEX HTAP Biomass Reactor for converting agricultural, forestry, and municipal solid waste to electricity and BioChar; natural gas (LNG) trading in southwestern China; CETY Capital, an internal project financing subsidiary in formation as of the 10-K filed April 14, 2025.

Customers and end markets

U.S. customers include industrial operators seeking waste heat monetization and entities eligible for federal Investment Tax Credits on waste energy recovery property. China customers include heavy truck LNG refueling stations, urban gas users, and industrial users in areas without pipeline connections in southern Sichuan Province and portions of Yunnan Province, located up to 700 km from depot locations.

Value-chain role

Equipment manufacturer and technology licensor for waste heat recovery in the U.S.; commodity trader and distributor of natural gas in southwestern China, purchasing from wholesale depots and reselling to end users via third-party trucking logistics.

Geographic exposure

United States (waste heat recovery and waste-to-energy equipment, with a planned biomass project in Lyndon, Vermont); People's Republic of China, specifically Sichuan and Yunnan provinces (natural gas trading through JHJ and 49 percent-owned Shuya joint venture).

Competitors

ORMAT, Exergy, TAS, Turboden, Hitachi Zosen Inova AG, Suez, Veolia, Ramboll Group, Covanta Holding Corporation, China Everbright International Ltd., Babcock & Wilcox Enterprises Inc.

Source: SEC 10-K, filed 2025-04-14

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