Business & Finance
Thu, July 15, 2010Wed, July 14, 2010Tue, July 13, 2010Mon, July 12, 2010Sun, July 11, 2010Fri, July 9, 2010Thu, July 8, 2010Evergreen Energy Advances K-Fuel in China Via Its Equity Joint Venture
Published in Business and Finance on Tuesday, July 13th 2010 at 1:00 GMT by Market Wire
DENVER--([ BUSINESS WIRE ])--Evergreen Energy Inc. (NYSE Arca:EEE) provided updates on the development of a Chinese coal facility employing its K-Fuel® technology. Evergreen and its partner, Beijing-based Beijing Gang Jing Hong Ren Technology Co., Ltd. (BGJHR), have each contributed US $500,000 to their equity joint venture (EJV), Evergreen China Energy Technology Co Ltd., also referred to as its Sino/US joint venture. These contributions will provide the EJVa™s initial capitalization to support marketing and technical activities. As previously announced, a letter of intent was signed in the fourth quarter of 2009 between the EJV and a large Chinese utility and chemical producer to explore ways in which the K-Fuel technology could be applied at an inland coal chemical facility currently under development.
"Over the past several months, we have worked diligently with our partners in China to advance the development of a K-Fuel facility, and I am excited and encouraged by the progress we have made and the opportunities that lie ahead"
In addition to the $1 million already contributed, BGJHR advises that an additional US$2 million is required for the completion of the technical work required to complete the EJVa™s aChina Package.a This set of technical documents will include detailed engineering design information for certain key components of the K-Fuel technology to be used for all projects in China. BGJHR also advised Evergreen that the design work for the China package is anticipated to be completed by the end of the third quarter of 2010. Completion of the China Package will position the EJV to finalize negotiations and execute a commercial agreement with the utility and chemical producer for the construction of a K-Fuel facility. Evergreena™s discussions for third party funding for Evergreena™s portion of the EJV requirements are progressing, although no definitive terms or commitments have been received.
aOver the past several months, we have worked diligently with our partners in China to advance the development of a K-Fuel facility, and I am excited and encouraged by the progress we have made and the opportunities that lie ahead,a said Thomas H. Stoner, Jr., CEO and director of Evergreen. aOur equity joint venture has expanded its capabilities to address the development of the China package. The EJV currently has 19 employees, 14 of which are engineers working closely with their US counterparts in multiple technical disciplines including process, mechanical, and control system design. In addition, Evergreen is working with Ascend International, a consulting firm with expertise in working with Sino/USjoint ventures,to assist the company in oversight of communication and business processes within the EJV.a
Based on positive results of initial laboratory testing and engineering analysis of the coal and K-Fuel process conducted in December 2009 and January 2010, a three-way agreement with the utility and chemical producer, the design institute for the coal chemical facility and the EJV was executed in February. This agreement, originally announced on March 2010, specifies the technical deliverables and role of each partner in the project, thus providing the technical foundation for the commercial agreement that is currently in negotiation.
Ascend International
Ascend International is a boutique strategy consulting firm that works with international companies to develop and implement effective business strategies for the China marketplace. Its principals offer over 20 years' experience each, focused exclusively on China. More information can be obtained at [ www.ascendstrategy.com ].
Evergreen Energy Inc.
Evergreen Energy Inc. (NYSE Arca:EEE) has developed two proven, proprietary, patented, and transformative green technologies: the GreenCerta" suite of software and services and K-Fuel®. GreenCert, which is owned exclusively by Evergreen, is a science-based, scalable family of environmental intelligence solutions that quantify process efficiency and greenhouse gas emissions from energy, industrial and agricultural sources and may be used to create verifiable emission reduction credits. K-Fuel technology significantly improves the performance of low-rank coals, yielding higher efficiency and lowering emissions. Visit [ www.evgenergy.com ] for more information.
Safe Harbor Statement
Statements in this release that relate to future plans or projected results of Evergreen Energy Inc. are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended by the Private Securities Litigation Reform Act of 1995 (the "PSLRA"), and Section 21E of the Securities Exchange Act of 1934, as amended by the PSLRA, and all such statements fall under the "safe harbor" provisions of the PSLRA. Our actual results may vary materially from those described in any "forward-looking statement" due to, among other possible reasons, the realization of any one or more of the risk factors described in our annual or quarterly reports, or in any of our other filings with the Securities and Exchange Commission, all of which filings any reader of this release is encouraged to study. The ability of the EJV to successfully complete the China package and to execute a commercial agreement for the construction of a K-Fuel facility is dependent upon the contribution of significant additional capital by Evergreen and BGJHR and the successful negotiation and execution of a commercial agreement, of which there can be no assurance. In addition, our ability to execute our business plan and develop the GreenCerta" or K-Fuel® technologies may be adversely impacted by an unfavorable decisions in the Buckeye litigation, which could result in a damage award against the Company, adversely impacting our ability to utilize the proceeds received from the sale of Buckeye, raise significant additional capital or effectively complete any restructure transaction on a timely basis to fund our business operations. Readers of this release are cautioned not to put undue reliance on forward-looking statements.
