Smartcool’s TEC Division Installs Power Factor Correction Technology at 2 U.S. Recycling Facilities

Energy Savings to Exceed 40%

May 23, 2019 Smartcool Systems Inc. (TSX.V: SSC; OTC: SSCFF; FSE: R3W) (“Smartcool” or the “Company”) is pleased to announce that its wholly owned subsidiary, Total Energy Concepts Inc. (“TEC”) has successfully completed projects for two recycling/resource recovery companies. The installations involved TEC’s full package solution, which included TEC’s proprietary Power Factor Correction (PFC) technology on (18) electric motors of 10 HP and larger driving the crushing, shredding and conveying of materials.

Power Factor Correction at the equipment level, when done correctly, is a documented energy efficiency measure that to date has had limited adoption worldwide. TEC has perfected this technology and application over the last 10 years which offers significant energy savings, as well as more operational up-time and extended equipment life.

Many utility companies already do, and more are starting to assess penalties to the customer for having a power factor below 90%.  Utility companies have to deliver more energy to a customer with a low power factor to make up for the inefficient use of the power being delivered to the facility.  This essentially creates two significant savings opportunities for business and industrial facilities.  The first being to increase their power factor to 90% or higher, and the second is to employ the device level method of power factor correction, which results in additional energy savings to the customer by improving the efficiency of the facility’s electrical distribution system.

Some utility companies have adopted a power factor credit system, meaning if a customer increases their power factor above 90%, the utility will issue them a monthly credit and the closer they get their power factor to unity (100%), the more the monthly credit.  For these customers, it creates three significant savings opportunities to put more dollars back onto their bottom line.

The two recycling companies, this is the second location for one of them, are both multi-location operations with one being regionally located in the upper Mid-West and the other with over (25) locations in (10) countries.  Revenue to Smartcool for these two installations was in excess of $250,000. With these two entities owning more than one location, and almost 10,000 recycling facilities in the US alone, it represents a significant potential growth opportunity for TEC and SmartCool.

About Smartcool

Smartcool Systems Inc. provides cutting edge energy efficient and energy cost reduction solutions for businesses around the world. The ECO3, ESM and ECOHome are Smartcool’s unique retrofit technologies that reduce the energy consumption of compressors in air conditioning, refrigeration and heat pump systems by up to 40%.

Total Energy Concepts (TEC), a wholly owned subsidiary of Smartcool, is a national leader in Power Protection, Energy Management, Power Quality, Facility Grounding, and Lighting Solutions that help companies improve their bottom line by reducing expenses that drastically cut into company profits. TEC focuses on a holistic approach to energy efficiency with proprietary technologies for power factor correction and third party technologies including LED, voltage conditioning and intelligent motor controls.

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