REPEAT - Clean Energy enters into a joint venture agreement to develop greenhouse business utilizing its gasification technology
September 10 2004 - 2:06PM
PR Newswire (US)
REPEAT - Clean Energy enters into a joint venture agreement to
develop greenhouse business utilizing its gasification technology
VANCOUVER, Sept. 9 /PRNewswire-FirstCall/ -- Clean Energy
Combustion Systems Inc. ("Clean Energy") (OTC BB: CECU) Clean
Energy Combustion Systems, Inc. is pleased to announce the
formation of a joint venture company, Pure Produce Greenhouses
Killam Inc. ("PPGK") for the purpose of operating leading- edge
hydroponic greenhouse systems. The greenhouses will grow "short
crop" vegetables, such as lettuce, spinach and root vegetables
including radish and carrots. These crops will be processed as
value-added bagged salads and complete meal salads. The
greenhouses, located in the heartland of Central Alberta (Killam),
will be designed by Pure Produce Greenhouses Canada Inc. ("PPGCI").
The joint venture partnership will utilize Clean Energy's
proprietary gasification system for heating, using straw or other
waste material as the fuel source, and will be based on
state-of-the-art hydroponic growing technology developed by Pure
Produce Greenhouses Canada Inc. Under the terms of a memorandum of
understanding, PPGCI will own a 40% interest in PPGK and will
supervise the construction and operation of the greenhouses. Clean
Energy will own a 60% interest in the venture and will be
responsible for providing construction and operation financing for
the project. The initial capital requirement of $3.75 Million USD
($5 Million CAD) will fully finance two ranges. Each range consists
of 20 greenhouse units, a nursery and a service building, on a two
acre footprint. The facilities represent a significant leap in
quantity and quality over current market alternatives. Production
capability is 600 -1,200% greater than traditional soil based
solutions, with crops grown and harvested year round. These pure,
superior quality crops will be totally free of insecticides and
herbicides. Preliminary market studies indicate a large and viable
market for fresh vegetables in all forms. Currently the primary
supply for this market comes from California, a five-day transport
to Alberta. Killam is central to the Edmonton/Red Deer/Calgary
corridor, and studies show that product from up to 200 ranges at
the Killam site could be sold in this market. Pending the
finalization of capital financing for the project, construction
will begin this fall, with first crop expected in early spring
2005. Each hydroponic range would allow for 11 crops per year, with
estimated sales of $1.7 Million CAD annually, and EBIDT of
$600,000. Based on an average construction cost of $2.4 Million CAD
per range, it is anticipated that PPGK could be self-financing
within six years, at an expansion rate of 20 additional ranges per
year. Background on Clean Energy and Pulse Combustion. Clean Energy
is a development-stage U.S. public company based in Vancouver,
British Columbia, Canada. The company's principal technology is a
unique high-efficiency valveless combustor technology that operates
on the principles of cyclical pulse combustion, originally
developed for aerospace propulsion. The company currently holds 6
patents in this area. This patented pulse combustion technology is
superior to the standard, steady-state combustion technology
currently used in the heat transfer industry in terms of both
energy efficiency and consequential fuel cost savings as well as
significantly reduced NOx and other emission levels. The company's
pulse combustion technologies can be used in a wide variety of
systems which burn hydrocarbon- based fuels and waste matter to
produce thermal energy for heat utilization applications and the
onsite generation of electricity. The company will either design,
manufacture and market products incorporating its environmentally
friendly and fuel efficient technologies, such as its gasification
system, or license or design, manufacture and sell its products for
incorporation into systems marketed by other companies. For further
information visit Clean Energy's Website at
http://www.clean-energy.com/ or contact: Clean Energy Combustion
Systems Inc. Telephone: 604-681-9337 Facsimile: 604-681-9354 Email:
Forward Looking Statements: Clean Energy's development plans and
the prospective potential of its joint venture with PPGK 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, current lack of capital and
prospective inability to satisfactorily procure financing for the
PPGK joint venture and 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. DATASOURCE: Clean Energy Combustion Systems Inc.
CONTACT: visit Clean Energy's Website at
http://www.clean-energy.com/ or contact: Clean Energy Combustion
Systems Inc., Telephone: (604) 681-9337, Facsimile: (604) 681-9354,
Email:
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