(COMTEX) B: SOUTHERN STATES POWER CO. INC - Execution of Memorandum of U
B: SOUTHERN STATES POWER CO. INC - Execution of Memorandum of Understanding To
Build New Biodiesel - Facility and Announces Restructuring of Joint Venture
New York, New York, Mar 18, 2002 (Market News Publishing via COMTEX) --
Southern States Power Co. Inc., a provider of alternative fuels and a member of
the National Biodiesel Board, announced that it has entered into a Memorandum of
Understanding with Lurgi, PSI Inc. (Web site: www.lurgipsi.com) outlining the
companies' intention to develop a state-of-the-art 30 million gallon per year
biodiesel facility in Riverside, Calif.
The facility will be designed to produce fuel that meets the highest standards
in the biodiesel industry and would be the largest biodiesel facility in the
United States.
Southern States Power Co. also announced that it has entered into an agreement
with Imperial Western Products for the restructuring of the companies' joint
venture regarding the Coachella Valley Production Facility. Under the terms of
the agreement, the parties will share an equal distribution of the revenues from
fuel produced at the Coachella plant, which will remain unchanged for a minimum
of 12 months, with the possibility of an extension with the approval by both
parties.
Southern States Power Co. will retain a 50% profit split in addition to a $0.10
per gallon royalty for all fuel produced and sold under the United States
Department of Agriculture subsidy program that has been assigned to the
facility.
The agreement further provides that Southern States Power Co. will be reimbursed
for all costs related to the construction of the Coachella facility in
consideration of the transfer of all Southern States Power Co.'s ownership in
the facility and equipment.
The U.S.D.A. subsidy previously granted to Southern States Power Co. for
production of biodiesel at the Coachella facility is now being assigned to
Imperial Western Products, allowing Southern States Power Co. to fulfill its
$7.5 million subsidy through the Riverside facility, as well as other planned
facilities in California, Arizona and Nevada.
Harrison A. McCoy III, chairman and CEO of Southern States Power Co., commented:
"Southern States Power Company is excited about its expanding relationship with
Lurgi, PSI, a publicly traded company and a leader in the field of engineering
and biofuels plant construction. Our joint goal is to develop gold standard
biodiesel production that meets both the American ASTM D6751-02 and the German
DIN 51606 specifications, the highest standards in the industry, at future
facilities."
McCoy added: "It has been a pleasure working with Imperial Western Products in
developing biodiesel production capability at Coachella. Both companies have
benefited from our association thus far, and we look forward to a long and
prosperous ongoing relationship under our restructured agreement."
About Southern States Power Co.
Southern States Power Co. is a fully reporting publicly traded company, whose
core business is to develop, produce and distribute alternative fuels,
particularly its OxEG Biodiesel. Southern States Power Co. has two synergistic
divisions: one for the production and sale of biodiesel and the other devoted to
the generation of power using alternative fuels.
More information can be found at the company's Web site: www.sspowerco.net or
call 909/476-3575, or e-mail Investor Relations at: info@sspowerco.net.
Safe Harbor Statement
Forward-looking statements and comments in this news release are made pursuant
to safe harbor provisions of the Private Securities Litigation Reform Act of
1995. All statements, other than statements of fact, included in this release,
including, without limitation, statements regarding potential future plans and
objectives of Southern States Power Co., are forward-looking statements. Such
statements are necessarily subject to risks and uncertainties, some of which are
significant in scope and nature beyond the Southern States Power Co.'s control.
There can be no assurance that such statements will prove to be accurate and
actual results and future events could differ materially from those anticipated
in such statements. As a result, actual results may differ materially depending
on many factors, including those described above. Southern States Power Co.
cautions that historical results are not necessarily indicative of the company's
future performance.
CONTACT: TEL: 909/476-3575 Southern States Power Co. Inc.
FAX: 909/476-3576 Investor Relations
EMAIL: info@sspowerco.net
MarketbyFax(tm) - To get the NEWS as it happens, call (604) 689-3041.
(C) 2002 Market News Publishing Inc.
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KEYWORD: New York, New York
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