ECO2 Forests, Inc. Provides Status on Current Projects
BOULDER, CO and QUEENSLAND, AUSTRALIA, Dec 07, 2010 (MARKETWIRE via COMTEX) -- ECO2 Forests, Inc. (PINKSHEETS: ECOF), a sustainable forestry company, is proud to announce the following corporate update regarding current projects.
Current projects are located in the Pacific Nation of Vanuatu, off Australia and in Northern Nevada. Both locations represent a total of 34,000 total acres -- 20,000 of which are targeted for planting.
Ray Smith, ECO2 Forests, Inc. CEO, stated, "We are currently poised to execute on the critical first phase of our business model on both the Vanuatu and Nevada projects. Both parcels of land -- one, which we have prepaid a three year lease on and the other, which was previously acquired and is valued at and listed in our financials at $55 million USD -- should commence planting during the first half of 2010. Should we be able to begin planting the sustainable, eco-friendly Kiri Trees over the next few months as is scheduled, it is anticipated that it will almost immediately trigger the first revenue generating cycle of the three that are inherent to our business model."
The regenerative nature of the Kiri Tree is such that, after each harvest cycle, the tree naturally regrows from the existing root and stump structure, dramatically reducing both cost and waste.
As detailed in the forecasts of ECO2's Global Forestry Plan, projects are broken up into planting modules, typically 1,000 acres per module. The following represent the Revenue Cycles of each 1,000 acre module.
Phase 1 -- Carbon Credits. Carbon Credits are intended to be certified for the Carbon Dioxide absorbed as a result of planting of the high Carbon Absorbing Kiri Trees.
Estimated Carbon Revenue commencing in Year 1, per 1,000 Acres is expected to represent $4.6 million USD.
Phase 2 -- Lumber and Biomass. Tree density thinning produces lumber to be sold to the international lumber market. This tree management process combined with the fast growing nature of the Kiri Tree is forecast to produce approximately 0.2 cubic meters, or 80 board feet of lumber.
Estimated Thinning Revenue commencing in Year 4-5, per 1,000 Acres is expected to represent $29.3 million USD.
Phase 3 -- Primary Tree Harvest -- Full Harvesting of the Kiri Trees Forest Module. At this point in the cycle, the trees are harvested and the resulting lumber and wood chip for biomass are also intended to be sold into the growing international lumber market.
Estimate Revenue commencing in Year 7-8, per 1,000 Acres is expected to represent $86.2 million USD.
"As we have many other 'projects in the pipeline,' while we focus on executing on our first two properties, we are anticipating continuing to position ourselves as one of the leading sustainable reforestation companies in the field over the coming 12 to 24 months," said Smith in closing.
About ECO2 Forests Inc.
ECO2 Forests was created to deliver large scale sustainable, lumber-producing forests through an innovative E4 Philosophy -- embracing positive Environmental impact and delivering Economic returns, while fostering Employment and Education.
Company projects are operated under the Global Forestry Plan which calls for the creation of thousands of acres of new forests to be planted and maintained in key locations around the world.
A publicly traded company, ECO2 Forests trades under the U.S. Stock Symbol ECOF. With offices in Boulder, Colorado and Queensland, Australia, the company has been structured specifically to be positioned for global growth and support.
For more information please visit www.eco2forests.com
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