RENW Discusses SEP Coal Reclamation Project
Thursday August 16, 10:05 am ET
TAMPA, Fla., Aug. 16 /PRNewswire-FirstCall/ -- Renewable Energy Resources, Inc., (OTC Bulletin Board: RENW - News; www.renw.com) - The following is a message to RENW Shareholders and other interested parties:
On August 9, 2007, the Company announced that it had received a commitment from a private investor to fund RENW and the Springfield Energy Project ("SEP"). Following the announcement, the Company received numerous enquiries about SEP. Therefore, we are releasing further information about the Project and its potential for the Company.
SEP is a joint venture between RENW and Wastech, Inc. to acquire the Peabody #10 mine complex near Pawnee, Illinois (Pawnee is about 15 miles from Springfield, IL). The Peabody #10 mine complex was once the largest coalmine in the U.S. The purchase price for the complex is $1.2 million. As a condition to the purchase, SEP must assume all liability for final reclamation of the site and replace the owner's reclamation bond.
The acquisition encompasses approximately 600 acres permitted to reclaim coal fines and dispose of coal combustion waste (fly ash). During the decades that the Peabody #10 mine complex was active, waste coal was deposited in a slurry area on the site. The slurry area is not covered or reclaimed because the coal fines were disposed before current reclamation regulations were in effect. Therefore, retrieving the coal fines is an easy process. Engineering studies indicate that there are over 4 million tons of coal fines in the slurry area.
Due to new technology at electrical generating facilities, coal fines are a desirable commodity. The coal fines in the slurry area can be sold as fuel in fluidized bed boilers or specially designed pulverized coal boilers. Potential customers for the coal fines are located within a short distance of the Project and many have expressed their desire for the coal.
SEP's business plan is simple: mine the coal fines and sell the coal to nearby customers. When a load of coal is delivered, SEP will accept fly ash for disposal at the site. The price of coal is dependant upon its BTU value, moisture content and ash content. We expect to receive between $12 - 16 per ton for this coal with little or no treatment required. We are investigating technologies that will allow us to clean up the coal and create a product that will fetch over $25 per ton. Disposal rates for fly ash are expected to be between $7 - 12 per ton. SEP will also generate revenue by selling equipment on the mine complex that is not necessary to future commercial operations.
SEP will begin generating revenue within a few months of completing the purchase.
The recent commitment of a private investor to provide RENW $650,000 for SEP will certainly aid us greatly in securing the financing for the Project. At this point in time, SEP has a term sheet from a large bank to finance the Project. We are working to meet the requirements of the term sheet. We are also exploring some promising alternatives to bank financing. While there is no guarantee that SEP will close, we are highly optimistic.
Ken Brown
President and Chief Executive Officer
About Renewable Energy Resources:
Renewable Energy Resources, Inc., is an alternative energy company developing and acquiring technologies that create energy and fuel from previously untapped sources. RENW specializes in renewable sources of alternative fuels as well as its core low flow hydro technology, the Energy Commander Technology. Renewable Energy Resources is traded under the symbol RENW on the OTCBB and is based in Tampa, Florida.
Forward-Looking Statements: This release contains forward-looking statements, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Expressions of future goals and similar expressions reflecting something other than historical fact are intended to identify forward-looking statements, but are not the exclusive means of identifying such statements. These forward-looking statements involve a number of risks and uncertainties, including the timely development and market acceptance of products and technologies, successful integration of acquisitions, the ability to secure additional sources of financing, the ability to reduce operating expenses and other factors. The actual results that the company achieves may differ materially from any forward-looking statements due to such risks and uncertainties. The company undertakes no obligations to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release.
