Summary of ClearSign Technologies Corporation

Business Overview

• Core Technology:

  • ClearSign Core™, a patented combustion enhancement technology that uses either a porous ceramic or metal flame stabilizing structure to significantly reduce flame length and emissions, notably NOx.
  • Functionality:
    • Improves combustion efficiency without external flue gas recirculation, SCRs, or high excess air systems.
    • Creates shorter, more stable flames for better heat transfer.
    • Operates effectively with fuels containing up to 80% hydrogen, including burning "pure" hydrogen, controlling NOx emissions to regulatory levels.
  • Applications:
    • Process burners in oil refining and gas processing industries.
    • Boiler burners for steam and hot water generation.
    • Flare burners for waste gas management.
    • Flaring systems, OEM burner replacements, and retrofits.

• Associated Products:

  • Flame Sensing:
    • ClearSign Eye flame sensor, a non-contact, reliable flame detection technology suitable for existing and new burners, with potential markets beyond combustion, including transportation.
  • Research & Development:
    • Developing hydrogen-capable burners and sensors for broader markets, funded by government grants.

Market Focus

• Industries Targeted:
  • Oil refineries, natural gas processing, chemical plants.
  • Industrial boilers, institutional and commercial boilers.
  • Enclosed ground flares and thermal oxidizers.
  • Enhanced oil recovery steam generators.
• Regulatory Environment:
  • Focused on regions with stringent NOx emission standards, like California, Texas, Europe, Middle East, parts of Asia, and Canada.
  • Examples include California’s recent BACT guidelines and stricter NOx regulations impacting the adoption of low-emission burners.
• Market Drivers:
  • Increasing regulations to reduce NOx and greenhouse gases.
  • Demand for more cost-effective and efficient pollution control solutions.
  • Trends toward decarbonization and hydrogen fuel use.

Company Operations & Customers

• Number of Employees: 18 full-time employees (as of December 31, 2024).
• Revenue:
  • 2024: $3.6 million
  • 2023: $2.4 million
  • Revenue growth of approximately 49.6% year-over-year.
• Profitability:
  • Net loss in 2024 of $5.3 million, a slight increase from $5.2 million in 2023.
  • Gross profit for 2024: $1.1 million, with a gross margin of about 31.1%.
• Customer Concentration:
  • Two California refineries account for approximately 86% of revenue in both 2024 and 2023.
  • No other customers represented more than 10% of revenue for these years.
• Major Customers:
  • California refineries, with project orders and retrofit installations ongoing.
  • International order in Europe with a refinery.

Revenue and Business Development

• Orders & Installations:
  • Six process heaters retrofitted with ClearSign Core burners, including installations in California and Europe.
  • Recent project orders include a chemical company in Texas and multiple California refineries.
  • Delivery & installation delays due to project timing, with some projects expected to complete in 2025.
• Collaborations:
  • Zeeco: Partnered for manufacturing and marketing process burners globally; announced launch of co-branded products.
  • California Boiler: Collaborates on boiler burners and flare solutions.
  • Developing sensors for industrial and transportation markets, with pilot installations ongoing.
• Research & Grants:
  • Significant funding from DOE (~$1.9 million) for hydrogen burner R&D.

Strategic & Market Positioning

• Focus on developing standardized, repeatable burner designs for rapid adoption.
• Leverages collaborations to expand manufacturing and sales.
• Positioning to meet growing environmental regulations by offering cleaner, more efficient combustion solutions.
• Intends to continue expanding product applications, including low NOx burners and hydrogen-fueled burners, for markets globally.

Note:

• The company’s operations are primarily based in the U.S., with initial international orders and partnerships.
• The business is still in growth and commercialization phases, with recent orders and collaborations representing progress but not yet achieving profitability.