• E-mail
• Print
• Comment
• Font Size
• Digg
• del.icio.us
• Discuss article

North Dakota Coal to Liquids Project Establishes 'American Lignite Energy' for Development Effort

Posted on: Friday, 25 May 2007, 12:00 CDT

Three companies exploring development of a North Dakota coal-based refinery to produce ultra clean liquid transportation fuels and electricity have now established a single company, American Lignite Energy, to evaluate the project. Partners in American Lignite Energy include Headwaters Energy Services, Great River Energy, and The North American Coal Corporation.

During the past several months, the American Lignite Energy partners have completed several preliminary engineering, environmental and market studies that indicate North Dakota could be an outstanding location for a coal-to-liquids facility. Although this is a very large development with many uncertainties, the partners are confident that the project warrants additional investigation because of its significant potential. Therefore, the partners are forming American Lignite Energy and are commencing more detailed engineering activities to further their analysis.

American Lignite Energy will continue activities to determine if development of a coal-based refinery is viable. If constructed, the facility could play a positive role in helping the United States achieve energy independence by producing ultra clean liquid transportation fuels such as gasoline and LPG (both propane and butane). The facility will also produce electric power, certain petrochemical feedstocks, and carbon dioxide for enhanced oil recovery. All production would be done in an environmentally sensitive manner.

The proposed coal-to-liquids project contemplates the development of a production facility that would produce approximately 32,000 barrels of fuel per day and utilize approximately 10 million tons of North Dakota lignite annually. Final site identification is under way. If the project were to move forward, engineering and permitting of the facility could take at least two years. Financing and construction of the facility would take at least four additional years.

Engineering activities are being supported in part by the North Dakota's Lignite Research Fund. The North Dakota Industrial Commission has committed $10 million toward the project -- $1.2 million of which is expected to be expended in the next phase of engineering, permitting, and site development. American Lignite Energy will provide matching funding in order to receive the state assistance.

Headwaters Energy Services is a division of Headwaters Incorporated (NYSE:HW), a world leader in creating value through innovative advancements in the utilization of natural resources. Headwaters is a diversified growth company providing products, technologies and services to the energy, construction and home improvement industries. Through its alternative energy, coal combustion products, and building products businesses, the Company earns a growing revenue stream that provides the capital needed to expand and acquire synergistic new business opportunities.

Great River Energy is a not-for-profit generation and transmission cooperative providing electricity to 28 distribution cooperatives in Minnesota and Wisconsin. It is the second largest power supplier in the state of Minnesota, and the fourth largest cooperative of its type in the nation.

The North American Coal Corporation, a subsidiary of NACCO Industries, Inc. (NYSE: NC), mines and markets lignite coal primarily as fuel for power generation, and provides selected value-added mining services for other natural resources companies. Corporate headquarters are located in Dallas, Texas, with surface mining operations in Texas, North Dakota, Louisiana and Mississippi, and limerock mining operations in Florida.

For more information, contact:

Headwaters Energy Services John Ward Vice President Marketing & Government Affairs (801) 984-994

Great River Energy Therese LaCanne Manager of Corporate Communications (763) 441-3121

The North American Coal Corporation David Straley Manager, Government & Public Affairs - ND Operations (701) 222-7596

About Headwaters Incorporated

Headwaters Incorporated is a world leader in creating value through innovative advancements in the utilization of natural resources. Headwaters is a diversified growth company providing products, technologies and services to the energy, construction and home improvement industries. Through its alternative energy, coal combustion products, and building materials businesses, the Company earns a growing revenue stream that provides the capital needed to expand and acquire synergistic new business opportunities.

Forward Looking Statements

Certain statements contained in this report are forward-looking statements within the meaning of federal securities laws and Headwaters intends that such forward-looking statements be subject to the safe-harbor created thereby. Forward-looking statements include Headwaters' expectations as to the managing and marketing of coal combustion products, the production and marketing of building materials and products, the licensing of technology and chemical sales to alternative fuel facilities, the receipt of product sales, license fees and royalty revenues, which are subject to tax credit phase out risks, the development, commercialization, and financing of new technologies and other strategic business opportunities and acquisitions, and other information about Headwaters. Such statements that are not purely historical by nature, including those statements regarding Headwaters' future business plans, the operation of facilities, the availability of tax credits in an environment of high oil prices and potential tax credit phase out, the availability of feedstocks, and the marketability of the coal combustion products, building products, and synthetic fuel, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 regarding future events and our future results that are based on current expectations, estimates, forecasts, and projections about the industries in which we operate and the beliefs and assumptions of our management. Actual results may vary materially from such expectations. Words such as "expects,""anticipates,""targets,""goals,""projects,""believes,""seeks,""estimates," variations of such words, and similar expressions are intended to identify such forward-looking statements. Any statements that refer to projections of our future financial performance, our anticipated growth and trends in our businesses, and other characterizations of future events or circumstances, are forward-looking. In addition to matters affecting the coal combustion product, alternative fuel, and building products industries or the economy generally, factors which could cause actual results to differ from expectations stated in forward-looking statements include, among others, the factors described in the captions entitled "Forward-looking Statements" and "Risk Factors" in Item 7 in Headwaters' Annual Report on Form 10-K for the fiscal year ended September 30, 2006, Quarterly Reports on Form 10-Q, and other periodic filings and prospectuses.

Although Headwaters believes that its expectations are based on reasonable assumptions within the bounds of its knowledge of its business and operations, there can be no assurance that our results of operations will not be adversely affected by such factors. Unless legally required, we undertake no obligation to revise or update any forward-looking statements for any reason. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this report. Our internet address is www.headwaters.com. There we make available, free of charge, our annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and any amendments to those reports, as soon as reasonably practicable after we electronically file such material with, or furnish it to, the SEC. Our reports can be accessed through the investor relations section of our web site.

Source: Business Wire

More News in this Category