Genco Corporation Announces Plan to Construct and Operate Biomass/Bio-Gas Generation Facility in Melbourne, Ontario, Canada
TYLER, Texas, March 20 /PRNewswire-FirstCall/ -- Genco Corporation (Pink Sheets: GNCC) is pleased to announce plans for the construction and operation of a biomass and bio-gas production facility in Melbourne, Ontario, Canada. Once fully operational, the facility will generate 11.4 MW of power, operating at 5 MW originally, and increasing in size from there. The entirety of the power generated is eligible under the Renewable Energy Standard Offer Pricing, at a rate of 11.9 cents per kilowatt-hour. After the primary facility is operational, Genco plans for a second facility to be commissioned in Eastern Ontario. In order to assist with the commission of the first project, the company plans to raise $10,000,000 in private investment money. Key factors to invest in Genco Corporation's unique opportunity include the following:
1. The company intends to acquire the turbines at a 70% discount. 2. The company has an exceptional location, near the largest concentration of hog-producers in Ontario, as well as having a steady supply of natural gas on site. 3. A government whose political will includes the closing of power facilities currently using fossil fuels, and has a mandate to acquire 2,000 MW from independent renewable suppliers. 4. A favorable environmental regulatory climate that encourages and rewards power generation from renewable sources. 5. The use of an experienced project team to undertake the build and maintenance of the first facility. 6. Completing regulatory requirements and an expectation of tying into the Ontario Power Grid. A biomass processing facility will be added to the power generation module to maximize the profitability and efficiency of the facility by providing potential revenue streams from the processing of hog and industrial effluent, the sale of compost as fertilizer and partially-processed water and the pickup and delivery fees of the above products. In addition, Genco Corporation will use methane produced from the biomass facility in the generation of energy, which will enable them to sell it to the Ontario Power Authority at the higher rate of 11.9 cents per kilowatt-hour under the Renewable Energy Standard Offer Pricing. Genco Corporation's sales are expected to grow over the next five years from $4,238,425 per annum to $21,533,850 per annum. The Ministry of Energy of Ontario has mandated that over 2,000 MW of energy should be generated from alternative sources. Ontario has a current consumption of 22,000 MW per annum which is expected to increase by 3.1% per annum. In addition, the Ministry is projected to lose over 5,000 MW of energy from the shut down of non-renewable facilities. All of these factors are positive signs that a strong, clean, renewable energy facility -- such as the one Genco Corporation is proposing to construct and operate -- is a perfect fit for the current political and environmental climate in Canada. About Genco Corporation In 2008, Genco Corporation plans to capitalize on a favorable regulatory, political, and economic climate to provide power generation and an effluent-processing facility. The company's vision is to be one of the premier power generators operating from renewable sources, maintaining good environmental policy while still providing an essential service to consumers. Genco Corporation projects cumulative earnings before interest, depreciation and taxes (EBITDA) to total $55,882,164 on cumulative sales of $69,411,877 after five years. This would give Genco Corporation a valuation of 8 times EBITDA, or $139,696,640 after five years. FORWARD-LOOKING STATEMENTS This press release contains forward-looking statements, including expected industry patterns and other financial and business results that involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to differ materially from results expressed or implied by this press release. Such risk factors include, among others: the sustainability of recent growth rates in the automation controls industry; the positioning of NAS in the market; ability to integrate acquired companies and technology; ability to retain key employees; ability to successfully combine product offerings and customer acceptance of combined products; general market conditions, fluctuations in currency exchange rates, changes to operating systems and product strategy by vendors of operating systems; and whether NAS can successfully gain market acceptance. Actual results may differ materially from those contained in the forward- looking statements in this release.
CONTACT INFORMATION Genco Corporation Robert Hardy, President Phone: 903-581-2040 Email: Robert@gencocorp.com Richard Hone, B.Sc., M Eng. Vice President, Chief Engineer Email: Richard.email@example.com
SOURCE Genco Corporation
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