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Clean Energy enters into a Joint Venture agreement with EnEco
Industries Ltd. for municipal solid waste gasification opportunities in Mexico
OTC/BB: CECU
VANCOUVER, Sept. 30 /PRNewswire-FirstCall/ -- Clean Energy Combustion Systems
Inc. ("Clean Energy") (OTC BB: CECU) is pleased to announce the formation of a
Joint Venture with EnEco Industries Ltd. of Vancouver to promote the sale or
license of EnEco's Controlled Oxidation Reaction Environment or "CORE"
gasification system in Mexico to safely and cleanly dispose or recycle solid
municipal wastes that would otherwise be directed to landfills, as well as
other solid wastes such as medical waste, tires and selected wood wastes. Under
the Joint Venture, Clean Energy will take the lead in procuring projects and
financing, while EnEco will handle all project engineering activities. All
profits from the sale or licensing of the CORE gasification system in Mexico
will be split 50/50 between the parties. As part of the Joint Venture, Clean
Energy will allow EnEco to use Clean Energy's oscillating burner technology for
the secondary combustion process in the CORE gasification system. Should the
integration of Clean Energy's oscillating burner technology with the CORE
gasification system work as anticipated, the parties anticipate expanding the
Joint Venture to other countries or granting EnEco a license to use the
technology in its CORE system for solid municipal waste gasification
applications.
The parties have entered into the Joint Venture in furtherance of continuing
discussions with senior Mexican government officials about the potential use of
the CORE gasification system to gasify solid municipal wastes in lieu of
developing or increasing landfills. These officials have stated their desire to
procure technology that can both economically process and dispose of municipal
solid waste in an environmentally clean manner as well as co-generate power to
assist in reducing the country's critical shortages in electrical power. As
part of these discussions, the Joint Venture has proposed to commence
construction by 2005 of four CORE gasification pilot plants in four of Mexico's
largest cities, and have those plants under operation by 2006. Each pilot plant
would process 600 tons per day of a combination of municipal solid wastes,
hospital waste, tires and selected wood wastes. Steam generated in the heat
recovery process would drive two 10 Megawatt steam turbines and generators for
a total electrical output of 18.8 Megawatts. Electrical energy from the plant
would be considered "base load power" or "firm" power which could be relied on
as a constant source of power to the local power grid. All ferrous and
non-ferrous metals contained in the solid waste would be recovered in their
original form and sold to recycling markets without contaminating the resultant
ash with heavy metals. Glass, sand, and ash recovered from the gasification
process can also be used for building materials. Additional plants would be
constructed upon satisfactory operation of the pilot plants. Executives of
Clean Energy and EnEco will be meeting with senior government officials in
Mexico next week to discuss the proposal.
The CORE gasification system is different in design, operation and application
than Clean Energy's proprietary Mark V ecoPhaser gasification system, which can
be used to gasify a wide variety of "homogenous" waste materials, such as pulp
and wood wastes from primary industrial processes, processed agricultural
residues, and animal wastes. These applications are not generally considered to
constitute municipal solid wastes and, as such, Clean Energy retains the right
under the Joint Venture to market the ecoPhaser gasification system in Mexico
for these applications outside the Joint Venture. Nevertheless there may be a
number of complimentary solid waste applications or subprocesses for which the
ecoPhaser gasification system will be appropriate to enhance the overall
process, such as the gasification of selected wood wastes to increase energy
production, in which case these applications will be governed under the Joint
Venture on the same basis as EnEco's Core gasification system.
EnEco is a private company, incorporated in 1991 with the intent to solve
municipal solid waste environmental problems with economical solutions. EnEco
has since installed more than a dozen municipal solid waste gasifiers, some in
continuous operation since 1992.
According to Mr. Ross Dickenson, President of EnEco "We are very excited to
pursue the joint venture with Clean Energy, particularly since both EnEco and
Clean Energy have recently been pursuing a number of government contacts in
Mexico which we believe may result in significant contracts. Further, since the
beginning of the year we have closely examined the operation of Clean Energy's
oscillation combustion technology as used in the secondary chamber of its
ecoPhaser gasification system, and believe that the use of that technology as
the secondary combustion chamber in our CORE gasification system will have
similar benefits in terms of both energy efficiency and reduced emissions,
thereby lending our system additional competitive advantages in procuring
contracts. Should the oscillating burners operate as anticipated, we look
forward to working with Clean Energy in broadening the scope of our technology
sharing for municipal waste applications to additional countries."
According to Mr. R. Dirk Stinson, President of Clean Energy "The joint venture
with EnEco is a continuation of our strategy to incorporate our oscillating
combustion technology into proven, commercial products, in order to more
quickly introduce our innovative oscillating combustion system into the market
to generate revenues and profits. Our ability to introduce our oscillating
burner to the market via EnEco's CORE gasification technology will assist in
demonstrating its effectiveness in a commercial context. This will open doors
for other applications of our burner technology, such as boilers and water
heaters. The profits generated from the sale of EnEco's CORE gasification
systems, together with the "proof" of the commercial operability of our
oscillating combustion technology, should allow us to accelerate our overall
sales and marketing activities. Also, due to the high output capacities of
EnEco's gasification system, it represents a "big ticket" project with both
profits and margins significantly higher than we would ordinarily receive for
the mere licensure of our technology."
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: