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