FORT WAYNE, Ind., Oct. 26, 2011 /PRNewswire/ -- Freedom Energy Holdings, Inc. (Pinksheets: FDMF) announced today that the company has entered into a joint venture agreement with Central State Shingle Recycling (CSSR) to provide CSSR with FDMF's proprietary asphalt shingle recycling technology SR-139.
During the last 12 month period, alone, CSSR has accumulated over 1 million tons of post-consumer shingles - just in its Phoenix, AZ location. The material terms of the Joint Venture agreement calls for FDMF to receive a royalty of $0.25 per gallon of the SR-139 required in the processing of the asphalt shingles. Initial expectations are for the processing of 50 tons of shingles per hour, which requires upwards of 1,000 gallons of SR-139, also per hour.
Additionally, CSSR has agreed to invest an estimated $700,000 in equipment required to complete this program. Joint Venture operations will open in the CSSR Phoenix Arizona recycling center and is anticipated to be fully operational in the first quarter of 2012.
Brian Kistler, Chief Executive Officer, Freedom Energy Holdings commented, "This is an extraordinary opportunity for Freedom. Not only will it provide a steady stream of reoccurring revenue, but also opens a new multi-billion dollar market and brings credibility to the effectiveness of our technology. There has been a great deal of effort and capital invested in the development of SR-139. To put things into perspective, if all of the 11 million tons of shingles disposed of each year in the U.S. were captured and recycled with SR-139, it would take in excess of 200 million gallons of SR-139 and would produce in excess of 2 billion gallons of the valuable high quality burner fuel previously announced."
Co-Founders, Scott Yelton, President and Eric Hennen, Chief Operations Officer, of Central State Shingle Recycling added, "We truly are on the cutting edge of a new market. With just the shingle aggregate in Phoenix, we plan to scale up to processing 500 tons per hour, by the end of 2012. In the greater Phoenix market there is estimated over 400,000 homes to be re-roofed from the damage the hail storm caused last year. We anticipate receiving an additional 1 million tons of shingles so the timing of our agreement with Freedom could not have been better planned."
ABOUT CENTRAL STATE SHINGLE RECYCLING, INC.
Central State Shingle Recycling is an asphalt shingle recycler. CSSR collects, sorts, processes and recycles asphalt shingles. This year alone CSSR has accumulated over 1 million tons of post-consumer shingles in Phoenix AZ. In addition to their Phoenix AZ location, CSSR began operations in Texas in July 2011. Their Texas recycling facilities receive an average of 250 tons of asphalt shingles a day. CSSR also performs a number of commercial services on a contract basis, ranging from private stock pile shredding to custom wood grinding and shredding including dye applications. For more information please visit www.centralstateshinglerecycling.com
ABOUT FREEDOM ENERGY HOLDINGS, INC.
Freedom Energy Holdings, Inc. (FDMF.PK) is a publicly traded company that specializes in the identification and development of technologies with commercial applications in the energy industry sector. The company's original primary focus is the commercial development of its proprietary, heavy oil technology. KC 9000®, a breakthrough technology, provides an effective and cost efficient system to enable heavy oil deposits to flow without heat. Recent research has developed and shown SR-139 to be effective at breaking down asphalt shingles allowing the recovery of hydrocarbons.
FORWARD LOOKING STATEMENT
This press release contains certain "forward-looking" statements, as defined in the United States Private Securities Litigation Reform Act of 1995 that involve a number of risks and uncertainties. Statements, which are not historical facts, are forward-looking statements. The Company, through its management, makes forward-looking public statements concerning its expected future operations, performance and other developments. Such forward-looking statements are estimates reflecting the Company's best judgment based upon current information and involve a number of risks and uncertainties, and there can be no factors that could cause actual results to differ materially from those estimated by the Company. They include, but are not limited to, the Company's ability to develop operations, the Company's ability to consummate and complete the acquisition, the Company's access to future capital, the successful integration of acquired companies, government regulation, managing and maintaining growth, the effect of adverse publicity, litigation, competition, sales and other factors that may be identified from time to time in the Company's public announcements.
Contact: Brian Kistler CEO, 260-490-9990
Freedom Energy Holdings, Inc.
SOURCE Freedom Energy Holdings, Inc.