Clean Energy announces multimillion dollar final agreement with Lucky Power International for rights to compressed natural gas t
December 05 2006 - 4:35PM
PR Newswire (US)
VANCOUVER, Dec. 5 /PRNewswire-FirstCall/ -- The Board of Clean
Energy Combustion Systems Inc. ("Clean Energy") ("CECU") is pleased
to announce terms of the final agreement with Lucky Power
International Limited (a BVI company registered in Hong Kong) for
an exclusive license of technology patented in the People's
Republic of China for the recovery, purification and compression of
raw landfill gas into high quality Compressed Natural Gas (CNG).
The raw gas is collected from the decomposition of municipal waste
in the landfills associated with large Chinese cities. The quality
of the output fuel is outstanding for powering all sizes of diesel
engines. Under the terms of the agreement Clean Energy will issue
seven million treasury shares in return for exclusive access to all
the commercial development of this technology in the People's
Republic of China. Clean energy will own a 70% interest in an
exclusive operating license for this patented technology in China.
The Company anticipates achieving net cash flow next year growing
substantially over the next five years. The technology is operating
at a pilot facility in Shenzhen, China. The CNG produced in
Shenzhen is sold via a long-term contract to the local municipality
which uses it to fuel its municipal vehicles. Commitments are being
made for the development of a minimum of two new landfill sites
over the next two years and a total of 10 new installations during
the next five years. Each facility will enjoy a production lifespan
approaching 30 years. Clean Energy is responsible for providing the
equity financing for each new project. Lucky Power will retain a
30% interest in the Chinese operations and provide management
expertise on a contractual basis in China. With the same agreement
Clean Energy has also acquired first rights of refusal for the
commercial development of this technology in all other global
markets outside the People's Republic of China. The Company
anticipates capacity 11,250,000 cubic metres (M(3)) of CNG per
annum in the first year of operations, growing to 2,925,000 M(3) of
CNG per annum by year five. In addition to the marketable CNG, a
substantial source of additional revenues for Clean Energy and
Lucky Power is anticipated through international trading of Carbon
Emission Reduction (CER) credits This technology should provide
significant benefits for all stakeholders: significant savings in
the cost of fuel for the local municipality; reliable cash flow for
the joint venture local operators; healthy and secure ROI for
owners and investors; major enhancement to local air quality;
creation of a significant non-fossil clean burning alternative
fuel; long-term benefit to the global environment. The Board of
Clean Energy is pleased to announce that this agreement with Lucky
Power and its recently announced agreement with North Island Green
Energy (NIGE) in British Columbia, Canada, for run-of-river hydro
electricity generation demonstrates Clean Energy's intention to
transition from a development stage US Public Corporation to an
operating corporation in the international clean energy
marketplace. About Clean Energy Clean Energy is a development-stage
US public company based in Vancouver, BC, Canada, that is moving
forward aggressively to acquire long-term contracted and indexed
revenues with customers such as government, non-government and
utility agencies that will provide stable revenues and incur
minimal costs with respect to sales and collections. The company
also seeks to achieve revenues from the commercialization of its
proprietary technologies and development of renewable energy
projects. The company's shares trade on the OTC Pink Sheets under
the trading symbol CECU. Forward Looking Statements: Clean Energy's
development plans and the prospective potential as described in
this news release constitute "forward looking statements" within
the meaning of the United States federal securities laws that
involve risks and uncertainties. Actual results may vary
substantially from expectations as a result of a variety of factors
including, by way of example and not limitation, Clean Energy's
financial requirements and current lack of capital; Clean Energy's
inability to satisfactorily complete pending or new project
proposals (including with prospective licensee or joint venture
partners) and enter into binding revenue-producing contracts based
upon those proposals; including as a result of insufficient
consumer acceptance of and demand for pulse combustors; regulatory
constraints; changes in Clean Energy's business plan and corporate
strategies; and the various risks and uncertainties disclosed by
Clean Energy in its various reports filed from time-to-time with
the SEC. Readers are urged to carefully review and consider the
various disclosures made by Clean Energy in its various reports
filed from time-to-time with the SEC that attempt to advise
interested parties of the risks and uncertainties that may affect
Clean Energy's business and an investment in its securities.
CONTACT: visit http://www.clean-energy.com/, or contact: Clean
Energy Combustion Systems Inc. at (604) 647-6474 or DATASOURCE:
Clean Energy Combustion Systems Inc. CONTACT: visit
http://www.clean-energy.com/, or contact: Clean Energy Combustion
Systems Inc. at (604) 647-6474 or
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