We usually don’t send a newsletter just to let you know that a press release has been issued by a Company that we follow. However, we believe today’s press release by Global Green Solutions (GGRN – $0.13) is so important it justifies a special newsletter.
Global Greensteam LLC, a subsidiary of Global Green Solutions Inc., has begun construction of its demonstration unit at Aera Energy’s Belridge oil field near Bakersfield, California. Additionally, Aera has made a significant financial contribution to construct the demonstration unit.
Aera Energy LLC, a joint venture between Shell and ExxonMobil and one of California’s largest oil and gas producers, currently operates natural-gas fired steam generators in its enhanced oil recovery process and intends to replace 10 of them with Greensteam waste biomass-fired steam generators for two key reasons: 1) to reduce their steam generation operating costs, and 2) to reduce their greenhouse gas emissions carbon footprint.
Before commencing construction of the 10 full scale units, a ¼ scale demonstration unit has to be build to test the performance of the Greensteam process, including emissions testing to secure air quality permits.
The total financing requirement to build and operate the demonstration unit is approximately $8 million, of which Aera had already agreed to provide $3 million for research and development. Aera’s financial injection is provided in return for discounts in the full project steam off-take price and a share in the carbon credits generated from the reduced emission footprint. As a result, there won’t be any dilution for shareholders.
The demonstration unit is scheduled for completion in late summer 2010. On acceptance of the unit, Greensteam will commence construction of the 10 full scale production units staged over a 30-month period.
“We are extremely excited about this financial support, which reinforces Aera’s strong interest in our Greensteam project,” said Craig Harting, COO of Global Green Solutions Inc.
Because this is such significant news, we invited Mr. Harting to give us an update on Global Green Solutions and the Aera-Greensteam project. We’ll conduct and publish the audio interview on Thursday December 3rd, 2009, and we’ll make sure to let you know as soon as it’s online.
To emphasize that the Company is entering a new phase, it has completely restyled its corporate website. You should take a look at http://www.globalgreensolutionsinc.com.
We believe this is a major step forwards as Global Greensteam received significant financial support from Aera Energy without any shareholder dilution. Once finished, the project can produce steam with very low air emissions and at substantially less cost than produced with oil or gas fuels.
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