MONTREAL—Waste heat recovery firm Sofame Technologies has reached an agreement with Synergy Entech to sell its industrial energy efficiency systems in China.

Synergy began marketing Sofames water heating systems earlier this year, according to the Montreal-based firm, with strong end-user interest perpetuating the deal.

To enter the Chinese market, Sofame has agreed to source key components of its systems in China, and will sub-contract and oversee manufacturing of Sofame heat recovery units for the Chinese market by qualified Chinese manufacturers.

According to Sofame, with light fuel oil in China carrying a price of $1.20 per US gallon and natural gas around $5.50 per Dekatherm, prices in that country hover around double those of the U.S. market.

We are eager to bring Sofames proven 94- to 99 per cent efficiency rates to industrial energy users across China, Synergy sales director Edward Wu said in a statement. By supplying components sourced in China, a significant cost barrier is eliminated.

Synergy has five offices in China, including Shanghai, Beijing, Hong Kong and Guangzhou.

With the deal in place, Sofame now has representation in China, Mexico and France, in addition to operations in North America.