MANILA, Philippines, Jan. 19 /PRNewswire/ -- Spectrum Blue Steel is accelerating the exploration and development of renewable energy in the Philippines with an endless supply of garbage and new contracts with major cities and local municipalities every day. This new hybrid system is called a Biosphere MKV which will be connected to a "MRF" system. This Biosphere system coupled with the Material recycling facility will achieve energy self-reliance while helping the country's dependence on fossil fuels and thereby minimizing the exposure to price fluctuations in the international markets.
This is a Biomass energy system that uses garbage of almost any type to produce heat, steam, mechanical power and electricity that comply with prescribed environmental standards pursuant to the republic act 9513. Spectrum Blue Steel has been approved to deploy the entire system through the "Department of Environment and Natural Resources" (DENR) and the "Department of Energy" (DOE) by Presidential Decree. Today anyone who has a computer on the planet can go to the website located at www.tgeg.asia and simply click on the San Fernando link and see the entire construction as it is being built via live video surveillance.
True Green Energy Group is the largest shareholder in Spectrum Blue Steel and is a promoter of world power and green technologies. TGEG has used the "Electric Power Industry Reform Act of 2001, Republic Act No. 9136 to build a new green energy power corporation. The law (RA NO. 9136) mandates the restructuring of the electric power sector and the privatization of the National Power Corporation.
This "Green Energy Option" will empower end-users to choose renewable energy in meeting their energy requirements on the grid. Furthermore Local governments and provinces have become partners with Spectrum Blue Steel in order to expedite the Biosphere deployment in 2010. The "National Transmission Corporation" (TRANSCO) pursuant to Republic Act No. 9136 will be responsible for the planning, construction, and centralized operation and maintenance of all the high voltage transmission facilities, including grid interconnection and ancillary services.
To accelerate the development of Spectrum Blue Steel's emerging renewable energy resource, a feed-in tariff system for electricity produced from biomass was mandated. Towards this end, the ERC in consultation with the National Renewable Energy Board (NREB) created under Section 27 of the Act formulated and promulgated a feed-in tariff system. SBS/TGEG now have Priority connections to the grid for electricity generated from the emerging renewable energy resource allowing the Biosphere power plants and certain territories and cities to be owned by Spectrum Blue Steel and True Green Energy Group for the next 25 years, with the right to indefinitely renew the green energy agreements.
Spectrum Blue Steel will also have priority purchase and transmission of, and payment for, such electricity by the grid system operators. The feed-in tariff to be set shall be applied for the interest of Spectrum Blue Steel's renewable energy and will be used in compliance with the renewable portfolio standard as provided for in the Act and in accordance with the RPS rules that will be established by the DOE. Moreover and Consistent, TRANSCO or its successors-in-interest SBS, TGEG, DUs, PEMC and all relevant parties have been mandated to provide the mechanisms for the physical connection and commercial arrangements necessary to ensure the success of the Biosphere Green Energy Option. The end-user will enroll under the energy option program and will be informed by way of its monthly electric bill, how much of its monthly energy consumption and generation charge is provided by Biosphere RE facilities.
The government share of the Biosphere new RE development project is equal to one percent (1%) of the gross income of RE resource from Spectrum Blue Steel resulting from the sale of renewable energy produced and such other income incidental to and arising from the renewable energy generation, transmission, and sale of electric power which shall be at one and a half percent (1.5%) of gross income.
The best news for both corporations is SBS/TGEG will enjoy a tax holiday under the Corporate Tax Rate. After seven (7) years of income tax holiday, Spectrum Blue Steel shall pay a corporate tax of ten percent (10%) on its net taxable income as defined in the National Internal Revenue Act of 1997, as amended by Republic Act No. 9337. Provided, That the RE Developer shall pass on the savings to the end-users in the form of lower power rates. The tax benefits will also include Tax and Duty-free Importation of Components, Parts and Materials, Tax Credit on Domestic Capital Components, Parts and Materials, Income Tax Holiday and Exemption, Zero-rated value added tax transactions with local suppliers of goods, properties and services.
Spectrum Blue Steel's strategy is to "de-carbonize" the electric power generation industry by shifting to non-fossil fuel-based energy sources, specifically energy-from-waste. This follows the Energy Policy Act of 2005 which confirmed energy-from-waste is renewable, and the Philippine Renewable Energy Law (RA 9513) of the Philippines.
Spectrum is a domestic corporation duly registered under the laws of the Philippines and holds a license to the Biosphere Technology from Global Environmental Energy Corporation (OTC Bulletin Board: GEECF). Global is a fully integrated energy company whose interests include electrical power generation, oil and gas exploration and production, clean coal and waste management technologies.
This press release contains forward-looking information within the meaning of Section 27A of the Securities Act of the 1933 and Section 21E of the Securities Exchange Act of 1934, and is subject to the safe harbour created by those sections.
CONTACT: Ronald Flynn
Spectrum Blue Steel Corporation
+639 1 8888 0017
SOURCE Spectrum Blue Steel