NEW YORK, Oct. 10, 2014 (GLOBE NEWSWIRE) -- ForceField Energy Inc. ("ForceField") (Nasdaq:FNRG), a designer, seller and distributor of energy products and solutions today announced the signing of an LED lighting agreement with the municipality of Uruapan ("Uruapan"), Mexico. The shared savings agreement is expected to generate approximately $8.4 million in revenue for ForceField over a ten year period for the supply and installation of over 15,000 LED streetlights for all municipal roads and highways in Uruapan.
The LED lighting upgrade project will feature a wide array of state of the art LED fixtures, including more than 15,000 LED street lights. Installation is anticipated to commence by the end of 2014 and conclude by the third quarter of 2015. ForceField will require financing to fulfill this contract and anticipates utilizing financing programs available from the Mexican government. Additionally Uruapan will provide significant assistance in obtaining this project financing due to its strong credit rating within Mexico.
The 10-year energy savings from the retrofit project is estimated to be more than 57 million Kwh and will reduce CO2 emissions by approximately 40,000 metric tons. Also, this retrofit will generate maintenance and energy savings, and reduce greenhouse gas emissions as a result of the adoption of an LED technology that is environmentally friendly; as well as providing improved security through brighter and more functional lighting for the residents of Uruapan.
Mexico's climate change law, which went into effect in late 2012, mandates that the country generate significant cuts in greenhouse gas emissions and increase the use of renewable energy technologies over the course of the next few decades. Mexico aims to cut its greenhouse gas emissions by 30 percent by 2020, and further by 50 percent by 2050. The legislation also calls for 35 percent of Mexico's energy to come from renewable sources by 2024 and requires government agencies to use renewable energy.
"ForceField's strong commitment in Latin America and its reputation for providing the highest quality LED lighting products and services made them a strong partner for this project," stated Ing. Aldo Macias Alejandres, the mayor of Uruapan. "We believe this program will create significant value for the municipality, our business community and our citizens through reduced energy and operating costs, lower CO2 emissions, and improved safety as a result of more reliable lighting. Given the scale of this initiative, it was extremely important for us to contract with a company that has demonstrated their ability to achieve the energy savings and reduced carbon output as outlined in their agreements."
"We are proud the municipality of Uruapan is undertaking a major energy saving initiative that will provide it with significant economic and environmental benefits for years to come," stated Richard St Julien, ForceField's Executive Chairman and President of LED Operations. "As Mexico continues to implement legislation to promote renewable energy to improve efficiency and reduce carbon emissions, we believe that the success of this project will further support our participation in other large scale programs within Mexico. We look forward to working closely with the municipality to ensure the successful implementation of this project over the coming months."
About the Municipality of Uruapan, Mexico
Uruapan is a city and municipality in the west-central part of the Mexican state of Michoacán. The city is the municipal seat of the municipality. Uruapan is one of the oldest cities in Mexico. According to the 2010 census, the population of the municipality was 315,379. The municipality has an area of 954.17 km² (368.4 sq. mi). The city and the municipality are both the second-largest in the state, behind only the state capital of Morelia.
About ForceField Energy Inc.
ForceField Energy Inc. and its subsidiaries comprise a global company whose products and solutions focus on sustainable energy solutions and improved energy efficiency. ForceField is a distributor of LED lighting products for a number of premier LED lighting manufacturers; and through its subsidiary American Lighting, is an award winning-contractor that has completed lighting installations for numerous high profile concerns in a variety of industries. ForceField is also a licensee of modular, heat recovery systems that convert waste heat into clean electricity. Its patented technology is based upon the Organic Rankine Cycle (ORC) and uses proprietary, multiple-component fluids that are environmentally sound.
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," "anticipates" or anticipated," "believes," "estimated" or "estimates," "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 ForceField'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 (i) achieving 2014 revenue and other financial guidance; (ii) the Company's ability to obtain adequate financing to achieve its LED objectives; (iii) the successful installation and efficacy of the Company's LED lighting products; (iv) the Company's ability to successfully raise sufficient capital to effectuate the ESCO acquisition as well as for additional working capital; (v) closing the ESCO transaction before October 15, 2014, (vi) the ESCO transaction being accretive to ForceField's earnings; (vii) the Company will deliver strong revenue growth and profitability over the coming years, (viii) the enormous revenue potential for the cross licensing agreement with Noveda; (ix); American Lighting's expectation to complete the San Diego Community College District project before December 31, 2014, (x) obtaining financing to fulfill the Uruapan contract and that the Uruapan contract will generate $8.4 million dollars in revenue over a ten year period, (xi) and other factors, without limitation, which are set forth in documents we file from time to time with the Securities and Exchange Commission, which are available at www.sec.gov. For a written description of these factors, see the section titled "Risk Factors" in the Company's Form 10-K for the fiscal year ended December 31, 2013 and any updating information in subsequent SEC filings. The Company disclaims any intention or obligation to update these forward-looking statements whether as a result of subsequent events or otherwise, except as required by law.