SOURCE: Green Energy Resources
Nov 23, 2009 09:45 ETIndia Power Generator Issues LOI for 7 Million Tons of Woodchips Valued at $576 Million per Year to Green Energy Resources (GRGR)
Seeks 5-Year Supply Contract
Green Energy Resources NEW YORK, NY--(Marketwire - November 23, 2009) - Green Energy Resources (PINKSHEETS: GRGR) has received a Letter of Intent from an Indian power company to supply in excess of 7 million tons of woodchips valued at over $576 million dollars over a 12-month period. India wants a five-year supply contract ($2.8 billion dollars over 5 years). The order poses daunting challenges for Green Energy Resources to meet a supply that would require approximately 15 shipments monthly or a shipment of about 40,000 tons every other day. The foremost obstacle is freight .The location of ships at a locked in rate to handle the capacity for the buyers. The second major issue for the buyer and the Government of India is to provide project financing in the US to Green Energy Resources for wood procurement, and port facilities. Discussions are ongoing. India is planning to purchase upwards of 36 millions tons of woodchips annually from world wide sources as a part of their renewables obligations under Kyoto. The procurement is currently underway on a global scale. The international community of nations, including the US, are planning and upgrading their climate change strategies in advance of next months meeting in Copenhagen, Denmark. The US is expected to make an announcement shortly. The US Senate climate bill is pending. The US House of Representatives passed the "Cap N Trade" bill earlier this year.
Green Energy Resources is an environmentally friendly company working to preserve world forests not cut them. The company sources its wood from urban wood waste streams, recycled wood, storm damage and tree farms. All wood is Urban Tree Certification System(UTCS) approved. The company has no long-term debt and raised capital through a 504 in 2009. Green Energy Resources revenues were adversely impacted in 2008 as a result of the steep rise of fuel prices that peaked at nearly $150 per barrel. The company has seen a strong rebound of supply contracts in 2009.
Except for historical information contained herein, the statements in this release are forward-looking statements that are made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties that may cause the companies' actual results in future periods to differ materially from forecasted results. Such risks and uncertainties include, but are not limited to, market conditions, competitive factors, the ability to successfully complete additional financing, ship availability, fuel costs and other risks.