Green Energy Resources has signed a domestic biomass supply contract worth an estimated $300 million over 10 years with an unidentified U.S. power company.
The New York City based company says the contract contains additional provisions for monthly fuel adjustments and yearly inflation increases over its 10-year span. According to Green Energy it is the "largest known U.S. supply contract to date for a single supplier." It adds that the biomass supply stream under this contract will begin in 2010.
Under the contract, the power plant requirements will exceed 1 million tons of biomass annually. "The contract is significant in reaching or exceeding Green Energy Resources projected revenue next year of $100 million," it says. The company also recently announced a commitment from a group of private financiers, also unidentified, for up to $10 million. It said the private lenders have agreed that the first loan tranche will amount to $2 million.
Green Energy Resources, formerly New York International Log & Lumber Co, is publicly traded on the Pink Sheets under ticker GRGR. Its mission is to become a major provider of low-cost, high-quality wood fiber fuels. It is working with power generating utilities, government and corporations for carbon emissions strategies and says it is "the only American company selected to supply the Euro Energy Group." It also says it is "100 percent Kyoto Protocol compliant."
The company sources its biomass from urban wood waste streams, storm damage, cities and municipalities. Green Energy Resources has been exporting wood chips to power plants in Europe; this is a major foray in the North American market for the company.
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