THE WOODLANDS, Texas--(BUSINESS WIRE)--Biofuels Power Corporation (OTCBB:BFLS) announced today that it will manage a project to use wood chips and other refuse from Hurricane Ike cleanup activities in the metro Houston area to fuel a pilot scale power generation and carbon sequestration project that will be connected to the ERCOT grid and provide up to 4 MW of low cost green electricity for Houston.
The other operating partners in the project are DSMC of Humble, Texas, a waste wood storage facility owner that served as a primary disposal site for the City of Houston's Hurricane Ike cleanup effort and controls an initial source of waste wood that will serve as fuel for the project, and Texoga Technologies Corporation, a consulting firm that will provide oil well retrofit and carbon sequestration expertise.
The pilot project will be installed on a 6-acre site near Humble, Texas that is controlled by DSMC, lies on top of the Humble Salt Dome and includes several abandoned oil wells that can be retrofitted for exhaust gas sequestration. Under the preliminary agreements signed today, Biofuels Power will contribute a 2.5 Mw steam turbine, a 1.5 Mw diesel electric generator and transformer and grid interconnect equipment in exchange for a 30% equity interest in the project; DSMC will contribute a ten year lease on the Humble property, infrastructure and waste wood in exchange for a 30% equity interest; and Texoga will contribute oil well retrofit and carbon sequestration consulting services in exchange for a 10% equity interest. Tax credit financing partners will own the remaining 30%.
"In 2006, we built the first commercial biodiesel fueled power plant in the country," said Fred O'Connor, president and CEO of Biofuels Power. "We now have two plants that run on 100% biodiesel and generate green electricity that we sell to Centerpoint and Entergy. The Humble project gives us an extraordinary opportunity to help with the Hurricane Ike cleanup; convert tons of pre-chipped waste wood into green electricity; and sequester exhaust emissions in a legendary oil field that has been largely inactive for the last 50 years," Mr. O'Connor continued. "Due to the heavily faulted and fractured geology of the Humble Salt Dome, we don't expect our carbon sequestration activities to result in significant oil production, but surprising things can happen in old oil fields," Mr. O'Connor concluded.
About Biofuels Power Corporation
We are pioneering the use of biodiesel and renewable diesel to fuel distributed electrical power generating plants that are located in close proximity to the end-users they serve. Our assets include a 5 MW plant in Oak Ridge North Texas that uses three reciprocating diesel generators to make green electricity that we sell to into the ERCOT grid and a 10 MW plant in Montgomery County, Texas that uses a GE Frame 5 turbine to make green electricity that we sell to Entergy. Headquartered in The Woodlands, Texas, Biofuels Power Corporation was the first company in the country to produce and sell green electricity generated from 100% biodiesel and renewable diesel fuels. Additional information may be found at www.biofuelspower.com.
Any statements in this press release about future expectations and prospects for Biofuels Power Corporation and its business and other statements containing the words "believes," "anticipates," "plans," "expects," "will," and similar expressions constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including the substantial capital expenditures required to fund its operations, the ability of the Company to implement its business plan, government regulation and competition. Biofuels Power Corporation undertakes no obligation to update these forward-looking statements in the future.
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