WASHINGTON, DC–(Marketwire - June 29, 2007) - Today, Fuel Frontiers, Inc. (FFI), a subsidiary of Nuclear Solutions, Inc. (
Initially, FFI’s efforts to develop waste-to-fuel plants were focused on the production of synthetic ethanol. However, since the January 2007 engagement of Bear, Stearns & Co. Inc. to potentially lead a bond offering for the construction of a waste-to-ethanol synthesis plant in New Jersey, the company has shifted the fuel production target to ultra-clean synthetic diesel, retained Westinghouse Plasma Corporation (WPC) for the design and engineering of the plasma gasification system, and selected Shaw Stone & Webster (SS&W) as the plant Engineer-Constructor.
Management implemented these program enhancements in anticipation of widening the scope of project financing options. As a result, FFI and Bear, Stearns & Co. will be meeting next month to jointly evaluate the current evolution of FFI projects relative to the initially discussed bond financing option for the New Jersey waste-to-fuel project with Bear, Stearns & Co. as the proposed lead underwriter. Management has retained experienced energy project finance experts to evaluate the best project financing options available. Currently, financing proposed FFI projects through proposed bond offerings is not considered by management to be critical or necessarily the best available option for the successful financing of any of the company’s proposed projects.
Management believes that the long-proven history of Fischer-Tropsch (FT) gas-to-liquids (GTL) synthetic diesel fuel production coupled with a mature and robust market for clean diesel fuel significantly enhances plant “bankability” and reduces risk from a project finance standpoint. FFI is coordinating with the American Society of Testing and Materials (ASTM) to assure that the FFI product is compatible with the planned specifications for diesel fuel derived from Fischer-Tropsch systems.
FFI plans to employ a commercially proven plasma gasification system designed by Westinghouse Plasma Corporation. FFI’s parent, Nuclear Solutions, Inc., has contracted with WPC for one plant system and is considering purchasing five additional plant systems to support the additional waste-to-fuel plants currently in the development pipeline. WPC has fifty years of experience in plasma technology and supplies key systems for waste-to-energy conversion projects since 1995 under agreements with Hitachi, Ltd. The WPC plasma gasification system at the Hitachi plant in Utashinai, Japan was commissioned in 2003 and can process approximately 165 to 300 tons per day of automobile shredder residue (ASR) and municipal solid waste (MSW), for use in electric power conversion. WPC is also delivering two 500 ton per day plasma gasifiers for the St. Lucie County, Florida MSW waste-to-electricity project.
FFI recently announced its selection of Shaw Stone & Webster (SS&W) as its Engineer-Constructor to address plant design, integration, construction, operation and maintenance of its waste-to-alternative fuel plants. SS&W will be the exclusive Engineering, Procurement and Construction Manager (EPCM) for all FFI first round plants.
In addition to the announced Toms River, New Jersey site, projected to produce 50 million gallons per year of ultra-clean diesel fuel product, FFI is currently in negotiations for five additional waste-to-diesel plant sites. For each potential site mentioned below, FFI is in the discussion phase with project stakeholders to determine overall project feasibility and equity structure. The company has not determined if and when it will fully engage the following projects and reserves the right not to provide further updates on these projects unless material engagements are executed.
With specifications subject to change, the additional potential plants are:
1) New York -- scrap tire waste -- 50 million gallons per year (GPY) diesel fuel product 2) Arizona -- scrap tire and used motor oil waste -- 50 million GPY diesel fuel product 3) Texas -- oil refinery waste -- initial commissioning for 50 million GPY diesel fuel product, anticipated final expansion to 200 million GPY. FFI has applied for a U.S. Department of Energy loan guarantee, pursuant to a DOE solicitation. 4) Oklahoma -- oil refinery waste -- initial commissioning for 50 million GPY diesel fuel product, anticipated final expansion to 200 million GPY. 5) Louisiana -- oil refinery waste -- initial commissioning for 50 million GPY diesel fuel product, anticipated final expansion to 200 million GPY.
FFI is a wholly owned subsidiary company of Nuclear Solutions, Inc. (
The matters discussed in this press release are forward-looking statements that involve a number of risks and uncertainties such as our plans, objectives, expectations, and intentions. You can identify these forward-looking statements by our use of words such as “proposed,” “initially,” “to develop,” “potentially,” “anticipation,” “believes,” “plans to,” “is considering,” “projected,” “currently in negotiations,” “potential site,” “to be constructed,” “will provide,” “will be,” “is intended,” “seems to be,” “current focus,” “intends,” “when,” “preliminary,” “ongoing,” “exploring,” “possibly,” “developing,” “initial,” “planned,” “possibility,” “seek,” “endeavor,” “planned,” or other similar words or phrases. Some of these statements include discussions regarding our future business strategy and our ability to generate revenue, income and cash flow.
With regards to forward-looking statements on the proposed waste-to-fuel facility, a facility like this has never before been constructed or operated and there are inherent risks associated with the establishment of such new operations. There could be unexpected problems or delays in the funding, construction and operation of the facility. There is no guarantee that we will be successful in raising the capital required for this project. While we believe that the appropriate technologies for waste-to-fuel conversion are commercially available, we cannot guarantee that commercially available technologies will be suitable under all circumstances for producing synthetic or GTL fuels in the proposed Fuel Frontiers, Inc. facility. The Company intends to secure funding required for the waste-to-fuel project primarily through debt and/or equity financing.
Overall, actual future results for Nuclear Solutions, Inc., and its subsidiary Future Fuels, Inc., could differ significantly from statements contained in the press release. Factors that could adversely affect actual results and performance include, among others, the companies’ limited operating history, dependence on key management, financing requirements, technical difficulties commercializing any projects, government regulation, technological change, and competition. In any event, undue reliance should not be placed on any forward-looking statements, which apply only as of the date of this press release. Additionally, patent pending status or licensing does not guarantee that a patent will issue or that the technology will be commercially successful. Accordingly, reference should be made to Nuclear Solutions, Inc.’s periodic filings with the U.S. Securities and Exchange Commission, also available through the Web site at www.nuclearsolutions.com.