RENW Discusses SEP Coal Reclamation Project
August 16 2007 - 10:05AM
PR Newswire (US)
TAMPA, Fla., Aug. 16 /PRNewswire-FirstCall/ -- Renewable Energy
Resources, Inc., (OTC:RENW) (BULLETIN BOARD: RENW)
(http://www.renw.com/) - The following is a message to RENW
Shareholders and other interested parties: On August 9, 2007, the
Company announced that it had received a commitment from a private
investor to fund RENW and the Springfield Energy Project ("SEP").
Following the announcement, the Company received numerous enquiries
about SEP. Therefore, we are releasing further information about
the Project and its potential for the Company. SEP is a joint
venture between RENW and Wastech, Inc. to acquire the Peabody #10
mine complex near Pawnee, Illinois (Pawnee is about 15 miles from
Springfield, IL). The Peabody #10 mine complex was once the largest
coalmine in the U.S. The purchase price for the complex is $1.2
million. As a condition to the purchase, SEP must assume all
liability for final reclamation of the site and replace the owner's
reclamation bond. The acquisition encompasses approximately 600
acres permitted to reclaim coal fines and dispose of coal
combustion waste (fly ash). During the decades that the Peabody #10
mine complex was active, waste coal was deposited in a slurry area
on the site. The slurry area is not covered or reclaimed because
the coal fines were disposed before current reclamation regulations
were in effect. Therefore, retrieving the coal fines is an easy
process. Engineering studies indicate that there are over 4 million
tons of coal fines in the slurry area. Due to new technology at
electrical generating facilities, coal fines are a desirable
commodity. The coal fines in the slurry area can be sold as fuel in
fluidized bed boilers or specially designed pulverized coal
boilers. Potential customers for the coal fines are located within
a short distance of the Project and many have expressed their
desire for the coal. SEP's business plan is simple: mine the coal
fines and sell the coal to nearby customers. When a load of coal is
delivered, SEP will accept fly ash for disposal at the site. The
price of coal is dependant upon its BTU value, moisture content and
ash content. We expect to receive between $12 - 16 per ton for this
coal with little or no treatment required. We are investigating
technologies that will allow us to clean up the coal and create a
product that will fetch over $25 per ton. Disposal rates for fly
ash are expected to be between $7 - 12 per ton. SEP will also
generate revenue by selling equipment on the mine complex that is
not necessary to future commercial operations. SEP will begin
generating revenue within a few months of completing the purchase.
The recent commitment of a private investor to provide RENW
$650,000 for SEP will certainly aid us greatly in securing the
financing for the Project. At this point in time, SEP has a term
sheet from a large bank to finance the Project. We are working to
meet the requirements of the term sheet. We are also exploring some
promising alternatives to bank financing. While there is no
guarantee that SEP will close, we are highly optimistic. Ken Brown
President and Chief Executive Officer About Renewable Energy
Resources: Renewable Energy Resources, Inc., is an alternative
energy company developing and acquiring technologies that create
energy and fuel from previously untapped sources. RENW specializes
in renewable sources of alternative fuels as well as its core low
flow hydro technology, the Energy Commander Technology. Renewable
Energy Resources is traded under the symbol RENW on the OTCBB and
is based in Tampa, Florida. Forward-Looking Statements: This
release contains forward-looking statements, which are made
pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Expressions of future goals and
similar expressions reflecting something other than historical fact
are intended to identify forward-looking statements, but are not
the exclusive means of identifying such statements. These
forward-looking statements involve a number of risks and
uncertainties, including the timely development and market
acceptance of products and technologies, successful integration of
acquisitions, the ability to secure additional sources of
financing, the ability to reduce operating expenses and other
factors. The actual results that the company achieves may differ
materially from any forward-looking statements due to such risks
and uncertainties. The company undertakes no obligations to revise
or update any forward-looking statements in order to reflect events
or circumstances that may arise after the date of this release.
DATASOURCE: Renewable Energy Resources, Inc. CONTACT: Ezra Smith,
Vice President of C. Jones Consulting for Renewable Energy
Resources, Inc., +1-727-771-9500, Web site: http://www.renw.com/
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