Four Rivers BioEnergy Inc. (OTCQB: FRBE) (“Verta”) announced today that its electricity generation subsidiary (Verta Energy Generation Limited) had successfully installed and operated its first electricity generator, utilizing the Cummins 1,250 KVA (1MW) diesel generator that it purchased last week and Verta’s customized generator fuel as its feedstock.
Verta is planning to progressively install additional generator units in its UK Plant’s Energy Centre in stages.
Stephen Padgett, the Group Chief Executive, commented: “We are delighted to have installed and run preliminary tests on the first generator, at its planned location within our Energy Centre, so efficiently and to have used it to produce renewable electricity using our own customized generator fuel, sourced from the waste oils business acquisition that we announced earlier this month. This is our ultimate proof-of-concept and represents a defining point in Verta’s development.”
He continued: “This, coupled with the waste oils business acquisition, represents the launch of the twin strands of our ongoing strategy – the integration, in one business model, of both (a) specialist waste handling and processing with (b) the generation of renewable energy from that waste.”
Verta has selected the 1 MW unit described above for its first generator, to allow flexibility in the rate of expansion. Additional generators (which may be identical to this unit or alternative generators from other world-class manufacturers, of similar or greater output capacity) will be purchased, installed and commissioned on a modular basis all the way up to our initial target of 20MW production, at a pace to match availability of capital and the growth of Verta’s feedstock supply strategy. In the next few weeks, Verta will be testing the operating performance of its first generator under different conditions in order to establish the optimal operating plan for its plant. It will then switch the generator into becoming the power supply source for the Integrated Waste to Energy Plant, prior to obtaining final accreditation to enable it to start to sell electricity into the power grid.
Overview of Verta’s UK Waste-to-Energy Plant
The Verta Group, which is wholly owned by Four Rivers, will own and operate the Waste-to-Energy plant that Four Rivers has been developing out of the 41 acre industrial site in the UK that it acquired in 2009.
The Verta plant, which is expected to commence operations later this year, includes several ‘zones’ including:
(a) An established ‘Waste Liquid Biomass Processing Plant’ with a substantial processing capacity of 60,000 metric tonnes per annum, which uses established processes and know-how (in what Verta term their ‘Black-Box’ waste liquid biomass capability) to process crude waste liquid biomass into a viable generator fuel (‘Verta’s customized generator fuel’)
(b) A substantial ‘Energy Centre’, which has been developed out of the previous boiler room and heat exchange facility on the acquired industrial site and will be used to house generators which will be fueled by Verta’s customized generator fuel to produce renewable electricity and heat. The Energy Centre Infrastructure is now largely complete and the first of several generator units was installed in June 2011. It has been configured to house several additional generator units, which will be added on a modular basis and it is estimated that the Energy Centre in its current form has capacity to accommodate generators which will produce an aggregate output of up to some 20MW, with plenty of space to extend upwards to 50MW.
(c) A series of on-site functioning electricity sub-stations, which will be used to supply renewable electricity from the Energy Centre directly into the power grid and to service the site itself.
(d) A future planned crush and oil processing plant which will be used to supply oil into the food processing industry and thereby create captive ‘back-hauled’ used oil for use in the Waste-Liquid Biomass Processing Plant and expand Verta’s captive supply of feedstock into its processing plant.
In addition Verta has entered into a contract to purchase ML Oils Limited, a long established waste oil collection and aggregation business, which will spear-head Verta’s direct interest, at the market entry level, in the waste biomass supply chain, which is important from the perspective of controlling supply volume, price and quality and differentiates Verta from the vast majority of renewable energy companies by integrating feedstock procurement, treatment and energy generation into one natural business cycle.
About Four Rivers BioEnergy Inc.
Four Rivers BioEnergy Inc. is focused on producing and selling energy (in the form of electricity) from sustainable waste and renewable feedstocks. The Company operates in the UK under the trade name Verta Energy. Its business model involves the vertical integration of the energy production cycle from feedstock procurement and processing through to electricity generation and sale, all within one business model and on integrated industrial sites. The Company is currently preparing itself for production at its first Integrated Waste to Energy Plant on an industrial site in the UK which it acquired in 2009. Its medium term aims are to replicate this business model in other geographical regions in the USA, Europe and internationally.
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements are based on management's good faith views and expectations when made. Forward-looking statements are inherently subject to known and unknown risks and uncertainties which, in the case of the company, include raising adequate capital to continue operations, technology and product development uncertainties, competition, cost and availability of feedstock, and plant development and manufacturing scale up. Actual results may differ, perhaps materially, from those discussed in the forward-looking statements. The company discussed in this release is not obligated to update its forward-looking statements or comment on those differences. Readers are encouraged to refer to the recent public filings of the company to further ascertain the risks associated with the forward-looking statements. Readers are urged not to place undue reliance upon such statements.