ClearSign Technologies (NASDAQ:CLIR) is positioning its low-emissions combustion equipment around tightening nitrogen oxides (NOx) requirements in industrial markets, Chief Executive Officer Dr. Jim Deller said during a Water Tower Research (WTR) Insights Conference fireside chat moderated by Peter Gastreich, WTR’s managing director for energy transition and sustainable investing.
Business focus: low-NOx combustion equipment for industrial customers
Deller described ClearSign as an “industrial technology company” that sells low-emissions combustion equipment—primarily burners—“at technology level margins.” He said the company’s customers include “the larger oil refiners,” petrochemical plants, and operators of industrial boilers, mist eliminators, and flares.
Regulatory driver: NOx compliance rather than carbon policy
Gastreich noted that ClearSign’s demand driver is NOx regulation rather than carbon policy, a point Deller agreed with while adding context about potential interactions with decarbonization trends. Deller said toxic emissions—particularly NOx—have been regulated since the Clean Air Act era of the 1970s and that there has “never been a question” about whether NOx should be regulated.
He said the ongoing need for cleaner combustion equipment stems from efforts to maintain acceptable ground-level NOx and ozone concentrations as industrial activity and vehicle usage increase. Deller also said that adding hydrogen into fuel gas—an element of some decarbonization approaches—can raise flame temperature, which can increase NOx formation and, in turn, create a need for more sophisticated combustion equipment to maintain compliance with existing permits.
Deller said current tightening is concentrated in ClearSign’s key markets of California and Texas, but he expects it to spread, adding that ClearSign also has an application in Europe.
Technology approach: avoiding NOx formation versus back-end cleanup
Deller contrasted ClearSign’s approach with conventional compliance solutions used for the strictest requirements in California and along the Texas Gulf Coast. He said traditional systems often rely on selective catalytic reduction (SCR), which he described as a costly “back-end cleanup system” involving catalyst and ammonia or urea injection to convert NOx into nitrogen and water.
ClearSign’s burners, he said, reduce NOx at the “front end” by minimizing NOx formation in the first place. To illustrate potential economics, Deller cited a late-2024 order where the customer’s estimate for SCR-based NOx control was “about $50 million,” while ClearSign’s estimate of the customer’s cost for its solution—including equipment, installation, and engineering—was “in the region of $7 million–$10 million.” Deller said that implied roughly $40 million of savings for that project.
Gen 2 fuel-flexible burner and the importance of operating references
Deller said ClearSign has completed Department of Energy testing for its Gen 2 flexible fuel burner, developed under an SBIR DOE program. He framed the goal as providing a burner that meets current NOx requirements and is capable of burning future fuels such as hydrogen. He also said fuel flexibility is important because refineries and petrochemical plants often burn mixed “waste gases” that can contain “up to 80+% hydrogen” along with other hydrocarbons.
Beyond fuel range, Deller said ClearSign designs products to be easy to install—fitting into existing openings—and to “run like the burner the operator is used to.” He described the Gen 2 burner as a robust platform that can be adapted into different shapes and configurations, including versions suited to different heater designs, such as a “flat flame” burner that runs along a wall.
Gastreich asked about operating reference points, citing a “26-burner Gulf Coast installation” approaching startup and earlier California installations that are used by regulators in best available control technology (BACT) determinations. Deller said reference points are “key” because refinery engineers are cautious in adopting new technology. He also said the Gulf Coast project—executed through a leading U.S. heater modification engineering company—is being watched closely and could be a “final box” for customers evaluating the technology.
Commercial priorities: orders, path to breakeven, and aftermarket
On ClearSign’s path to breakeven, Gastreich referenced the company’s stated target of about 160 process burners per year. Deller said a ClearSign burner sells for an average of about $100,000, implying roughly $16 million in annual revenue to reach breakeven.
He highlighted how large multi-burner projects can add up, noting the Gulf Coast shipment included 26 burners and two newer orders referenced by Deller were for 32 and 36 burners. He said the company is discussing opportunities in the “200–300 range” and added that, since the start of the year, ClearSign has added “about 25 burners” to that opportunity set.
Deller also emphasized the role of aftermarket revenue—maintenance and spare parts—calling it a high-margin stream that can be executed with minimal resources once equipment is deployed. He said aftermarket revenue was about 10% of total revenue based on last year’s results and is expected to grow as more units are installed. In response to Gastreich, Deller said aftermarket margins can have an “extremely” outsized contribution relative to revenue.
Looking ahead, Deller said ClearSign is focused this year on bringing in orders, noting revenue can be “lumpy” given large project sizes. He called the Texas Gulf Coast startup “probably singularly the most important single event on our calendar at this time,” and also highlighted an upcoming demonstration event at Zeeco’s facility. Deller said more than 30 people—including decision-makers and subject matter experts from major refineries and engineering companies—had registered to attend, with some asking for additional time before and after the scheduled day to see the burner operate.
Beyond process burners, Deller pointed to ClearSign’s flare product line, including a roughly $1 million order currently being built that he said is the fifth order from that client, and also cited inquiries related to a standardized burner for midstream heaters.
About ClearSign Technologies (NASDAQ:CLIR)
ClearSign Technologies Corporation is a clean energy technology company specializing in advanced combustion solutions that significantly reduce emissions of nitrogen oxides (NOx), carbon monoxide (CO), and greenhouse gases from industrial and power generation sources. Established in 2010 and based in Santa Rosa, California, ClearSign has developed proprietary burner and sensing platforms designed to enhance fuel efficiency and environmental performance for gas turbines, furnaces, boilers, and incineration units.
The company’s core offerings center around two technology platforms: the XCL™ ultra-low NOx combustion system and the SGM™ (Syngas & Gas Measurement) sensor suite.
