Genco Corporation Announces Plan to Construct and Operate Biomass/Bio-Gas Generation Facility in Melbourne, Ontario, Canada
20 Março 2008 - 1:34PM
PR Newswire (US)
TYLER, Texas, March 20 /PRNewswire-FirstCall/ -- Genco Corporation
(Pink Sheets: GNCC) is pleased to announce plans for the
construction and operation of a biomass and bio-gas production
facility in Melbourne, Ontario, Canada. Once fully operational, the
facility will generate 11.4 MW of power, operating at 5 MW
originally, and increasing in size from there. The entirety of the
power generated is eligible under the Renewable Energy Standard
Offer Pricing, at a rate of 11.9 cents per kilowatt-hour. After the
primary facility is operational, Genco plans for a second facility
to be commissioned in Eastern Ontario. In order to assist with the
commission of the first project, the company plans to raise
$10,000,000 in private investment money. Key factors to invest in
Genco Corporation's unique opportunity include the following: 1.
The company intends to acquire the turbines at a 70% discount. 2.
The company has an exceptional location, near the largest
concentration of hog-producers in Ontario, as well as having a
steady supply of natural gas on site. 3. A government whose
political will includes the closing of power facilities currently
using fossil fuels, and has a mandate to acquire 2,000 MW from
independent renewable suppliers. 4. A favorable environmental
regulatory climate that encourages and rewards power generation
from renewable sources. 5. The use of an experienced project team
to undertake the build and maintenance of the first facility. 6.
Completing regulatory requirements and an expectation of tying into
the Ontario Power Grid. A biomass processing facility will be added
to the power generation module to maximize the profitability and
efficiency of the facility by providing potential revenue streams
from the processing of hog and industrial effluent, the sale of
compost as fertilizer and partially-processed water and the pickup
and delivery fees of the above products. In addition, Genco
Corporation will use methane produced from the biomass facility in
the generation of energy, which will enable them to sell it to the
Ontario Power Authority at the higher rate of 11.9 cents per
kilowatt-hour under the Renewable Energy Standard Offer Pricing.
Genco Corporation's sales are expected to grow over the next five
years from $4,238,425 per annum to $21,533,850 per annum. The
Ministry of Energy of Ontario has mandated that over 2,000 MW of
energy should be generated from alternative sources. Ontario has a
current consumption of 22,000 MW per annum which is expected to
increase by 3.1% per annum. In addition, the Ministry is projected
to lose over 5,000 MW of energy from the shut down of non-renewable
facilities. All of these factors are positive signs that a strong,
clean, renewable energy facility -- such as the one Genco
Corporation is proposing to construct and operate -- is a perfect
fit for the current political and environmental climate in Canada.
About Genco Corporation In 2008, Genco Corporation plans to
capitalize on a favorable regulatory, political, and economic
climate to provide power generation and an effluent-processing
facility. The company's vision is to be one of the premier power
generators operating from renewable sources, maintaining good
environmental policy while still providing an essential service to
consumers. Genco Corporation projects cumulative earnings before
interest, depreciation and taxes (EBITDA) to total $55,882,164 on
cumulative sales of $69,411,877 after five years. This would give
Genco Corporation a valuation of 8 times EBITDA, or $139,696,640
after five years. FORWARD-LOOKING STATEMENTS This press release
contains forward-looking statements, including expected industry
patterns and other financial and business results that involve
known and unknown risks, uncertainties and other factors that may
cause our actual results, levels of activity, performance or
achievements to differ materially from results expressed or implied
by this press release. Such risk factors include, among others: the
sustainability of recent growth rates in the automation controls
industry; the positioning of NAS in the market; ability to
integrate acquired companies and technology; ability to retain key
employees; ability to successfully combine product offerings and
customer acceptance of combined products; general market
conditions, fluctuations in currency exchange rates, changes to
operating systems and product strategy by vendors of operating
systems; and whether NAS can successfully gain market acceptance.
Actual results may differ materially from those contained in the
forward- looking statements in this release. CONTACT INFORMATION
Genco Corporation Robert Hardy, President Phone: 903-581-2040
Email: Richard Hone, B.Sc., M Eng. Vice President, Chief Engineer
Email: DATASOURCE: Genco Corporation CONTACT: Robert Hardy,
President of Genco Corporation, +1-903-581-2040, ; or Richard Hone,
B.Sc., M Eng. Vice President, Chief Engineer, , for Genco
Corporation
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