October 20, 2008
Energy Quest Signs MOU for Energy From Waste Venture in Romania
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 Memorandum of Understanding (MOU) to establish a joint venture to jointly own and construct the installation of a 500 tons per day of MSW (municipal solid waste) to 20 MW Power gasification plant in Romania with CO.F.A.M.M. (COFAMM) of Romentino, Italy.
Gasification is a chemical and heat (thermo chemical) process used to convert solid materials such as coal, biomass which includes MSW and any carbonaceous materials into a gas for use as a fuel.
The total cost for the plant will be approximately $73 million Euro or $98 million USD. Terms and conditions will be stated in the definitive agreement with a deposit commitment of 20% and financing in place for the total project.
The company will provide the proprietary technologies, equipment and project management for the complete gasification plant, while COFAMM will provide solutions for waste sorting, which provides the refuse-derived fuel (RDF) feedstock for the gasification plant.
RDF is a solid fuel produced by preparing and shredding solid municipal waste. Non-combustible materials such as glass and metals are removed prior to making it. The RDF material is used in shredded form or compressed into pellets. COFAMM manufactures and constructs machines for separation of all components of household garbage.
The waste sorting line recovers steel and non ferrous materials, paper and cardboard, aluminum and steel cans, plastic film and RDF that can be used as fuel to generate the energy the system requires. The facility will generate clean electricity and will be a zero waste facility since recovered steel and glass will be sent to recycling facilities.
EQI and COFAMM have designed a system 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 main general contractor for the project has not been selected, but Mr. Ouellette said he has a few reputable firms in mind.
The equity of the proposed plant when complete is expected to be $98 million USD. Following commissioning & start up, it's 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 look forward to getting this project underway and plan on other mutually beneficial opportunities with COFAMM. This project will be the first EQI installation of its gasification to power systems with COFAMM," stated Wilf Ouellette, President and CEO of Energy Quest, Inc.
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, trammels 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 includes 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.