DGAP-News: Alter Energy Group to acquire agri-business site for new Integrated Biomass CHP
(firmenpresse) - DGAP-News: Alter Energy Group AG / Key word(s): Acquisition
Alter Energy Group to acquire agri-business site for new Integrated
Biomass CHP
08.04.2011 / 12:20
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Alter Energy Group to acquire agri-business site for new Integrated
Biomass CHP
Zurich Switzerland - April 7, 2011
ALTER ENERGY GROUP AG ('AEG')(the 'Company'), Frankfurt Stock Exchange
Ticker Symbol: 39f; WKN: A0MW07; ISIN: CH0032424969, announces that it
signed a of Letter of Intent (LOI) to acquire 100% of 'Vasilisk' LLC for
purposes of implementing a new Integrated Biomass Combined Heat and Power
(CHP) Plant in Northern Ukraine.
Under terms of the LOI AEG will acquire 100% of the shares of Private
Enterprise 'Vasilisk' LLC, consisting of a complex of land, buildings and
structures located outside Chopovichi, Malin District, Zhitomir region,
Ukraine. AEG plans to acquire the shares in a Special Purpose Vehicle for
the development, funding and implementation of a 12MWe net (12.5MWe gross)
multi-stage Integrated Biomass CHP Plant. Stage I consists of a 6MWe net
(6.25MWe gross) wood biomass CHP, the acquisition of agricultural land for
switchgrass energy crops, and the establishment of a sustainable forestry
management company for extracting wood waste from local forests. Stage II
consists of an additional 6MWe net (6.25MWe gross) wood/straw biomass CHP
that will operate initially on wood and switchgrass straw converting to
100% switchgrass straw operations over a 5-year period as the switchgrass
reaches full maturity yielding 12 tons per hectare.
Edward J. Klaeger IV, CEO of AEG stated, 'The planned acquisition site is
strategically located near dense and un-managed large forestry areas in
addition to abundant low-quality farmland that is ideally suited for
biomass production. We have already identified 11,000 hectares of
available farmland within an average 10km radius from the site that can be
secured under long term lease. The new site also provides an ideal
location to launch our sustainable forestry management and biomass
collection operations that is far superior to our previous Greentech
acquisition target. This enables the implementation of planned increases
to power production without the additional third-party fuel supply risk.
Together with our Joint Venture (JV) partners, we will have 100% ownership
of the project at half the cost of the proposed 60% AEG/JV stake in
Greentech. This allows for greater flexibility in structured finance and
higher cash flows without the potential technical, design and engineering
concerns as well as transparency, and other ownership issues associated we
encountered previously. We recently completed the project technical
scheme, financial model and business plan, and are currently structuring
the capital requirements to implement Stage I which, if we begin this
quarter days, is expected to be online in June 2012 Stage I alone projects
significant upside in AEG earnings and share price while allowing for
retained earnings to fund most future equity capital requirements for Stage
II.'
About AEG: AEG is a Zurich-based publicly traded Swiss company with
emerging market operations in Ukraine. AEG develops, acquires, and invests
in alternative and renewable energy projects and companies. The current
target market is Ukraine with expansion into established markets such as
theU.S., Canada and Germany with planned penetration into other emerging
markets currently in development.
Contact
Investor Relations: info(at)alterenergygroup.com
Website: www.alterenergygroup.com
Forward-Looking Statements
Statements in this press release may constitute forward-looking statements
and are subject to numerous risks and uncertainties, including the
Company's current and future capital needs, any actions by the Company's
partners that may be adverse to the Company, the success of competitive
products, other economic factors affecting the Company and its markets, and
other risks. The actual results may differ materially from those contained
in this press release. The Company disclaims any obligation to update any
statements in this press release.
End of Corporate News
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119090 08.04.2011
Datum: 08.04.2011 - 12:20 Uhr
Sprache: Deutsch
News-ID 33739
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