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Clean Energy Joint Venture receives concession to build and
operate first 30 megawatt solid municipal waste and tire gasification pilot
facility for Mexico
OTC/BB: CECU
VANCOUVER, Oct. 25 /PRNewswire-FirstCall/ -- Clean Energy Combustion Systems
Inc. ("Clean Energy") (OTC BB: CECU) is pleased to announce that it has signed,
with its Joint Venture partner, EnEco Industries Ltd., a Memorandum of
Understanding with Sistema Metropolitano de Procesamiento de Desechos Soildos
("SIMEPRODESO"), granting the Joint Venture a concession to construct and
operate a 30 megawatt solid municipal waste-to-energy facility for the City of
Monterrey, Mexico, using EnEco's Controlled Oxidation Reaction Environment
"CORE" gasification technology. Clean Energy estimates that it will cost
approximately $70 million to construct the facility and to commence operations.
Construction is proposed for 2005 and operations are scheduled to commence in
2006. Clean Energy and EnEco intend to secure an experienced third-party solid
municipal waste operator to fund the project and to operate the initial plant
as well as anticipated follow-up plants for SIMEPRODESO, and are currently
under discussions with an established operator relative to this aspect of the
project.
The CORE technology is an environmentally-friendly gasification system which
converts organic or carbon-based materials contained in solid municipal waste
to 5% ash content. Since the gasification process uses relatively low heat
levels, the glass, metals, aluminum, wires and other ferrous and non-ferrous
metals and aggregates contained in the solid waste will not be gasified;
instead, they will be easily recovered in their original form after the
gasification process and sold to recycling markets. All material remaining
after the gasification process is further processed to ensure all inert
material is contaminant free. The resulting ash from the gasification of the
organic materials is relatively benign since it is not contaminated with heavy
metals. After this final processing step, ash together with glass and sand
recovered in the gasification process may be used for asphalt and concrete
building materials as well as land fill cover. The energy rich gases produced
by the gasification process will be used to create electrical energy through a
steam turbine circuit. Final plant discharges are lower and, in some cases
significantly lower, than that presently allowed under United States and
Canadian pollution standards.
SIMEPRODESO is a private company owned by the State of Nuevo Leon, Mexico which
provides all of the State's municipal solid waste management services.
SIMEPREDESO currently processes approximately 5,000 tons per day of unsorted
solid municipal waste for the Monterrey municipal area. Under the Memorandum of
Understanding, for the next 20 years SIMEPRODESO will deliver 765 tons per day
of unsorted solid municipal waste containing at least 10% wood waste, and 135
tons per day of car and truck tires, to the plant to be gasified and to create
heat energy that can be converted into electrical energy, and will be obligated
to purchase the electrical power generated at a fixed rate of US $0.06 per kW.
Based upon the 30 MW output of the plant, this will result in approximately US
$16 million in revenues per year. Under the Memorandum of Understanding, the
Joint Venture will construct additional capacity on site, and additional 600
ton per day gasification facilities at outlying transit locations in Monterrey
once the initial plant is operating.
Under the Joint Venture, all profits from the operation, licensing or sale of
the Monterrey plant will be split 50/50 between Clean Energy and EnEco. As part
of the Joint Venture, Clean Energy will allow EnEco to use Clean Energy's
unique high-efficiency valveless oscillating burner technology as a component
part of the secondary oxidation process in the CORE gasification system under
which the gases produced by the primary gasification process are burned and the
resultant heat energy is made available to create steam energy for electricity
production.
Accordingly to Mr. R. Dirk Stinson, President of Clean Energy, "Over the past
several months, Clean Energy and EnEco have meet with senior officials of the
National Forest Commission of the federal government of Mexico (the Comison
Nacional Forestal or "CONAFOR"), a department of the federal Ministry of
Natural Resources (the Secretaria de Medio Ambiente y Recursos Naturales or
"SEMARNAT"). While the meetings were originally held to discuss the disposition
of forestry waste and the creation of electricity using our gasification
technologies, they have since branched out to address more critical national
issues facing Mexico relating to shortages of electricity capacity and the
environmentally-sound disposition of solid municipal waste, wood waste and
tires, with CONAFOR taking a leading role in identifying applications in Mexico
on behalf of SEMARNAT and introducing the parties. Under our discussions with
CONAFOR and SEMARNAT, the Joint Venture proposed the construction of four CORE
gasification pilot plants to commence construction by 2005 and operation by
2006. The 30 MW plant for Monterrey is the first of these pilot plants. Through
CONAFOR and SEMARNAT, the Joint Venture is currently in discussions with senior
officials in another State of Mexico relative to the use of the CORE
gasification system to address the municipal solid waste requirements for one
of the largest cities in Mexico located in that State, as well as several other
potential users and/or investors in the country. On behalf of itself and
SEMARNAT, CONAFOR has provided in the Memorandum of Understanding its agreement
to continue to provide assistance in making CORE gasification waste-to-energy
viable in Monterrey and the rest of Mexico, as well as developing wood
plantations for producing renewable energy using our gasification technologies
with SIMEPRODESO and other private producers."
Mr. Ross Dickenson, President of EnEco, added "The CORE gasification system is
a proven environmentally-friendly municipal waste-to-energy technology that is
ideal for growing countries like Mexico in need of electricity and looking for
solutions to their municipal waste problems, including reductions in landfills.
We believe the construction of numerous CORE facilities in Mexico, combined
with the energy and operating efficiencies and reduced emissions resulting from
the incorporation of Clean Energy's oscillating burner technology as the
secondary combustion chamber in the CORE system, will provide the basis for the
rapid selling of the CORE system internationally. EnEco and Clean Energy are
already in discussions relating to joint proposals with respect to other
countries."
Background on Clean Energy and Oscillating Combustion: Clean Energy is a
development-stage U.S. public company based in Vancouver, British Columbia,
Canada. The company's principal oscillating combustion technology is a unique
high-efficiency valveless combustor technology that operates on the principles
of cyclical combustion, originally developed for aerospace propulsion. The
company currently holds 6 patents in this area. This patented oscillating
combustion technology is superior to the standard, steady-state combustion
technology currently used in the heat transfer industry in terms of both energy
efficiency and consequential fuel cost savings as well as significantly reduced
NOx and other emission levels. The company's oscillating combustion
technologies can be used in a wide variety of systems that burn gaseous and
hydrocarbon-based fuels and waste matter to produce thermal energy for heat
utilization applications and the onsite generation of electricity. The company
will either design, manufacture, and market products incorporating its
environmentally-friendly and fuel efficient technologies, such as its
gasification system, or license or design, manufacture, and sell its products
for incorporation into systems marketed by other companies.
For further information visit Clean Energy's Website at
http://www.clean-energy.com/ or contact:
Clean Energy Combustion Systems Inc.
Telephone: 604-681-9337
Facsimile 604-681-9354
Email:
Forward-Looking Statements: Clean Energy's development plans and the
prospective potential of its Joint Venture with EnEco as described in this news
release constitute "forward-looking statements" within the meaning of the
United States federal securities laws that involve risks and uncertainties.
Actual results may vary substantially from expectations as a result of a
variety of factors including, by way of example and not limitation, Clean
Energy's financial requirements, current lack of capital and prospective
inability of the Joint Venture to satisfactorily procure orders from the
Mexican government, financing for the Joint Venture and changes in Clean
Energy's business plan and corporate strategies; and the various risks and
uncertainties disclosed by Clean Energy in its various reports filed from
time-to-time with the SEC. Readers are urged to carefully review and consider
the various disclosures made by Clean Energy in its various reports filed from
time-to-time with the SEC that attempt to advise interested parties of the
risks and uncertainties that may affect Clean Energy's business and an
investment in its securities.
DATASOURCE: Clean Energy Combustion Systems Inc.
CONTACT: visit Clean Energy's Website at http://www.clean-energy.com/ or
contact: Clean Energy Combustion Systems Inc., Telephone: (604) 681-9337,
Facsimile (604) 681-9354, Email: