September 2, 2008
Energy Quest Signs Letter of Intent With CO.F.A.M.M. Of Italy
Energy Quest, Inc. ("EQI") (OTCBB: EQST), an emerging leader in alternative energy and the development and production of hydrogen-enriched alternative fuels in an environmentally responsible manner, today announced the signing of a Letter of Intent (LOI) with CO.F.A.M.M. (COFAMM) of Romentino, Italy. The letter sets forth the basic terms and conditions under which EQI expects to enter a definitive purchase agreement for the construction and installation of 500 tons per day of MSW (municipal waste) to 20 MW Power gasification plant.
The total cost for the gasification and power generation part of the plant will be approximately $56 million USD. Term and condition will be stated in the negotiated definitive purchase agreement with a commitment of 20% deposit and financing in place for the total project.
EQI will provide the proprietary technologies, equipment, and project management for the complete gasification plant, while COFAMM will provide a total solution for MSW waste sorting, front end, to provide RDF feedstock for the gasification plant. EQI and COFAMM anticipate engineering and commercial layouts consisting of four modular units of gasification and 6 MW power enabling the gasification of MSW for the profitable production of alternative green energy. The company plans to rapidly move forward subject to the mutual agreement of the terms and conditions set forth in the project proposal in addition to the completion of a definitive agreement.
The equity of the proposed plant when complete is expected to be $72,000,000 USD. Following commissioning & start up, expected to be completed within 12 months from the signing of the joint venture agreement, the joint venture anticipates immediate cash flows with gross annual revenues of $26.6 million while yielding a net profit of $11.1 million after taxes and debt payment.
"We are pleased to have secured this opportunity with COFAMM. This project will be the first EQI installation of its gasification to power systems with COFAMM and looking forward with the prospect of others," stated Wilf Ouellette, President and CEO of Energy Quest, Inc. "We expect this venture to pave the way for additional mutually beneficial opportunities with COFAMM."
COFAMM is a company, situated in the north of Italy, which manufactures machines for the material recycling industry. It constructs machines for separating all components from municipal waste "garbage." The company has bag openers, trommels for organics separation, magnetic separators, ballistic separators for plastics, papers and cardboard, and on finish line are located ECS current systems for separating cans. The company is constantly increasing its many years of experience in this field and is well known both in the Italian and the World market. The customers who have chosen COFAMM products have always been satisfied with the quality and the reliability of the equipment. The recycling equipment is carefully built and include the latest technologies to fill the customers' needs.
COFAMM is dedicated to the manufacturing of complete systems for household garbage sorting from municipal waste. The waste sorting line cover most of problems of separation giving as final result; 1) steel and non ferrous materials, 2) paper and cardboard, 3) separated aluminum and steel cans, 4) plastic film, HDPE and PET bottles separated by color and, at the end of sorting conveyor, 4) RDF that can be used as fuel to generate the energy the system requires. Organic materials can be treated with different systems such as Autoclaves or Pyrolysis depending on the customer needs. Municipal waste going to the landfill is reduced by more than 75 percent once processed by the COFAMM system. The garbage sorting lines can be configured in many different ways. The systems would be set up depending on; 1) the composition of "raw material" that can vary from country to country, 2) the cost of energy, 3) cost of man power and 4) other parameters determined on a case by case situation. For more information about COFAMM visit their web-site http://www.cofamm.it/
About Energy Quest
Energy Quest is a diversified energy company with interests in both conventional and renewable energy sources. Its mission is to bring new technologies to bear to enhance existing energy production as well as developing new energy sources. The immediate objective of the company is to secure energy projects using the PyStR and M2 gasifier and the acquisition of existing, profitable Alternate Energy companies. This would provide significant positive cash flow to the company while being an ideal location for development, demonstration, and operation of many of the company's new technologies. This is the first of many new technologies Energy Quest plans to announce and deploy over the coming months that will demonstrate that it is possible for an energy company to be both environmentally friendly and highly profitable.
Energy Quest through its subsidiaries, Syngas International Corp. and Syngas Energy Corp., is an emerging leader in the development and marketing of low-cost alternate fuels worldwide. Through superior technology, the Company is focused on becoming a GreenPowerhouse(TM). Record energy prices combined with the global focus moving rapidly towards addressing pollution, has heightened the need for sustainable, zero emission energy. Energy Quest's technology is based on clean renewable energy positioning it to benefit from global trends. Web-site http://www.nrgqst.com/
From time to time, the company may issue forward-looking statements, which involve risks and uncertainties. This statement may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as actual results could differ and any forward-looking statements should be considered accordingly.
Contact: Energy Quest, Inc. Investor Relations 888-619-2221 or 404-478-9845 e-mail: [email protected]
SOURCE: Energy Quest, Inc.