5-Year Shared Savings Agreement Will Generate Significant Energy and Cost Savings
NEW YORK – ForceField Energy Inc. ("ForceField") (Nasdaq:FNRG), a designer, seller and distributor of energy products and solutions announced the signing of an agreement to provide LED lighting solutions valued at $1.35 million with Grupo Merza, a large and prominent retail group with operations in 30 Mexican states through its 145 supermarkets and 18 distribution centers.
Under the terms of the agreement, ForceField Energy will supply LED lighting products and solutions to Grupo Merza and will receive a percentage of maintenance and energy savings based on a mutually agreed schedule over the initial 5-year period. The agreement covers the retrofit of the 145 store locations and 18 distribution centers located across 30 states in Mexico. Based on a shared cost savings and lease financing model, Forcefield will be responsible for the upfront cost of the LED lighting products, while Grupo Merza will be responsible for the cost of removal of the existing lighting products and the installation of the new LED products. The project is subject to ForceField obtaining financing.
The installation of LED products in the supermarkets is expected to take approximately six to nine months. This retrofit will generate significant energy and cost savings, and reduce greenhouse gas emissions via the adoption of an LED technology that is more environmentally friendly.
"For us, one of our crucial goals is to be close to our customers by offering the best service, most environmentally friendly shopping environment, and lowest cost." stated Guillermo Valdes Vega, CEO of Grupo Merza. "In order to achieve this goal, Grupo Merza chose to partner with ForceField Energy to supply high quality, energy efficient lighting solutions throughout all of our facilities. ForceField's diverse product offering combined with their flexible shared savings model, provided a tailored solution to meet our specific business needs. This agreement will enable us to expand our energy-efficiency efforts, reduce our carbon footprint, and create significant operational savings, further supporting our commitment to our customers, partners and communities we serve. Finally, this agreement is also indicative of our strong support and commitment to address Mexico's "Social Responsibility Initiatives".
"Being selected by Grupo Merza, a leading supermarket and wholesale operator in Mexico, provides a unique opportunity to expand our presence and enhance our visibility in this growing market. The shared savings agreement and scale of this program clearly demonstrates our ability to provide unique solutions to fit specific client needs. With the recent enactment of landmark energy reform in Mexico that structurally changed the national electric industry, as well as providing new mechanisms to encourage the use of clean energy sources, we are confident demand from diverse businesses throughout Mexico will accelerate over the coming months and years", stated Richard St Julien, ForceField's, Executive Chairman and President of its LED Division.
About Grupo Merza
Grupo Merza, a 100% Mexican Company with more than 65 years in the market and one of the largest retail companies in Mexico, started operations in 1948 and is focused on the distribution and marketing of groceries, with over 4,500 employees in their companies: Merza; Mega Merza, Abarrotes Lagunitas, Cava del Duero and Super Covi. Grupo Merza has 145 supermarkets and 18 distribution centers covering 30 states of Mexico. http://www.grupomerza.com.
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.
ForceField Energy Inc.
Richard ST Julien