Green Energy Resources: India LOI
Green Energy Resources has received a Letter of Intent from an Indian power company to supply 7.2 million tons of woodchips valued at over $576 million dollars over a 12 month period. The order poses daunting challenges for Green Energy Resources to grow and expand to meet the supply that would require approximately 15 shipments monthly or a shipment of about 40,000 tons every other day. The other major obstacle is to find and locate enough ships at a locked in rate to handle the capacity. Discussions with the buyer and the Government of India to provide financing are ongoing. India is planning to purchase upwards of 36 millions tons of woodchips annually from world wide sources as a part of their renewables obligations under Kyoto. The shift away from fossil fuel based energy coincides with actions in US and China to reduce greenhouse gas emissions.
In the United States, the US Senate has presented its version of the CAP 'N' TRADE Bill passed by the US House of Representatives earlier this year. The bill was offered last week by California Senator Barbra Boxer and has more stringent emissions rules than the House version. The bill is expected to be voted on this fall. In the meantime, President Obama has signed Executive Orders directing the Federal EPA to implement and enforce emissions regulations as set out in the CAP 'N' Trade bill. The Executive Order paves the way for US coal burning power generators to begin a switch over to co-firing as has been done in Europe. Green Energy Resources in connection with the change in the US market is offering the first blended woodchips with coal to potential buyers. Green Energy Resources can custom blend the woodchips and coal to buyers specifications.
Except for historical information contained herein, the statements in this release are forward-looking statements that are made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties that may cause the companies' actual results in future periods to differ materially from forecasted results. Such risks and uncertainties include, but are not limited to, market conditions, competitive factors, the ability to successfully complete additional financings,ship availability, fuel costs and other risks.
Green Energy Resources, Joseph Murray, (631) 375-7921, firstname.lastname@example.org, www.greenenergyresources.com