NEW YORK, NY, July 18, 2002 — Environmental Strategies & Technologies International Inc. (ESTI) announced recently that it has signed a Letter of Intent (LOI) for a proposed joint venture with Alchemix Technologies of Arizona to build an electrical generating plant in Los Angeles fueled by landfill biomass.
Alchemix has developed a bioremediation technology, called HydroMax, which converts biomass (garbage, waste products, tires etc.) into low cost hydrogen, syngas or electricity. The company has 4 patents and 96 claims of invention relating to HydroMax technologies.
All major units of this technology have been demonstrated, material and energy balances completed and operating costs developed by Kvarner, the world’s third largest engineering and construction contractor.
Demonstrations of this technology have been performed in plants built to simulate commercial facilities. HydroMax processes have been positively reviewed by engineers from some of the world’s most respected energy and mining companies including: Rio Tinto, Chevron-Texaco, Phillips-Connaco and Williams companies.
According to the proposed Joint Venture, ESTI will fund and Alchemix will build a “proof of commercial viability” plant for this process on a landfill site that has been selected in the Los Angeles basin.
This site is equipped with a state-of-the-art separator, which can remove metals and glass from the biomass, rendering it suitable as input for the HydroMax process. In addition, there is a boiler on the site that will convert the hydrogen or syngas resulting from the process into electricity, which would go directly into the power grid.
The landfill, separator and power generator are all currently permitted. It is planned that this plant will be able to demonstrate commercial viability of the HydroMax technology, with startup costs greatly reduced due to the infrastructure already in place.
The initial project is expected to generate revenues of approximately $4-5,000,000 per year. It is anticipated that after completion and successful operation of the first plant, full-scale plants will be constructed which will cost $273,000,000 each, generating net revenues of $250,000,000 each per year as they benefit from economies of scale.
The terms of the LOA require that ESTI be responsible for 100% of the funding for this project, and to fund capital and operating costs for at least one, new full scale plant each year for a period of five years.
ESTI President Sameer Hirji remarked: “This is a very exciting opportunity in the field of bioremediation and we intend to create a new, wholly-owned subsidiary called Biomass Remediation Inc. to fulfill the terms of the proposed joint venture. We believe this will be a very profitable addition to our company’s growing group of consulting and construction companies focused on improving the environment. We are very proud to be simultaneously part of the effort to clean up the environment and to develop renewable energy resources.”
Carter Dye of Alchemix Corporation said: “We are pleased to be working in cooperation with Ken McCallion, Chairman of the Board of ESTI, who is a leading environmental advocate with a proven track record in the environmental world. We believe this project will have a powerful environmental impact and will contribute to improving the energy shortage in California.”
If you would like to read the letter of intent, go to http://www.alliancecorp.ws/ and click on “LOA” under the heading “Environmental Systems & Technologies Inc.”
About Alchemix Corp.
Alchemix has developed and will continue to develop technologies that will fundamentally impact a wide range of energy and industrial sectors. These technologies have the potential to shift the economic and environmental realities of both the construction and energy industries worldwide.
H2 technologies, a subsidiary of Alchemix, has invented and demonstrated hydrogen production technology that will provide hydrogen at prices that will enable a shift from an oil to a hydrogen based economy. It is the goal of management to establish its technologies as the worldwide standard for hydrogen production and gasification. http://www.alchemix.net/
Environmental Strategies & Technologies International, Inc. is a holding company designed to invest in environmental technologies and corporations that will cross-sell and promote within its focused portfolio of products and services.