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
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.
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
Robert Hardy, President
Richard Hone, B.Sc., M Eng. Vice President, Chief Engineer
SOURCE Genco Corporation