VANCOUVER, Dec. 5 /PRNewswire-FirstCall/ -- The Board of Clean Energy Combustion Systems Inc. ("Clean Energy") ("CECU") is pleased to announce terms of the final agreement with Lucky Power International Limited (a BVI company registered in Hong Kong) for an exclusive license of technology patented in the People's Republic of China for the recovery, purification and compression of raw landfill gas into high quality Compressed Natural Gas (CNG). The raw gas is collected from the decomposition of municipal waste in the landfills associated with large Chinese cities. The quality of the output fuel is outstanding for powering all sizes of diesel engines.
Under the terms of the agreement Clean Energy will issue seven million treasury shares in return for exclusive access to all the commercial development of this technology in the People's Republic of China. Clean energy will own a 70% interest in an exclusive operating license for this patented technology in China. The Company anticipates achieving net cash flow next year growing substantially over the next five years.
The technology is operating at a pilot facility in Shenzhen, China. The CNG produced in Shenzhen is sold via a long-term contract to the local municipality which uses it to fuel its municipal vehicles. Commitments are being made for the development of a minimum of two new landfill sites over the next two years and a total of 10 new installations during the next five years. Each facility will enjoy a production lifespan approaching 30 years.
Clean Energy is responsible for providing the equity financing for each new project. Lucky Power will retain a 30% interest in the Chinese operations and provide management expertise on a contractual basis in China. With the same agreement Clean Energy has also acquired first rights of refusal for the commercial development of this technology in all other global markets outside the People's Republic of China.
The Company anticipates capacity 11,250,000 cubic metres (M(3)) of CNG per annum in the first year of operations, growing to 2,925,000 M(3) of CNG per annum by year five. In addition to the marketable CNG, a substantial source of additional revenues for Clean Energy and Lucky Power is anticipated through international trading of Carbon Emission Reduction (CER) credits
This technology should provide significant benefits for all stakeholders: significant savings in the cost of fuel for the local municipality; reliable cash flow for the joint venture local operators; healthy and secure ROI for owners and investors; major enhancement to local air quality; creation of a significant non-fossil clean burning alternative fuel; long-term benefit to the global environment.
The Board of Clean Energy is pleased to announce that this agreement with Lucky Power and its recently announced agreement with North Island Green Energy (NIGE) in British Columbia, Canada, for run-of-river hydro electricity generation demonstrates Clean Energy's intention to transition from a development stage US Public Corporation to an operating corporation in the international clean energy marketplace.
About Clean Energy
Clean Energy is a development-stage US public company based in Vancouver, BC, Canada, that is moving forward aggressively to acquire long-term contracted and indexed revenues with customers such as government, non-government and utility agencies that will provide stable revenues and incur minimal costs with respect to sales and collections. The company also seeks to achieve revenues from the commercialization of its proprietary technologies and development of renewable energy projects.
The company's shares trade on the OTC Pink Sheets under the trading symbol CECU.
Forward Looking Statements: Clean Energy's development plans and the prospective potential as described in this news release constitute "forward looking statements" within the meaning of the United States federal securities laws that involve risks and uncertainties. Actual results may vary substantially from expectations as a result of a variety of factors including, by way of example and not limitation, Clean Energy's financial requirements and current lack of capital; Clean Energy's inability to satisfactorily complete pending or new project proposals (including with prospective licensee or joint venture partners) and enter into binding revenue-producing contracts based upon those proposals; including as a result of insufficient consumer acceptance of and demand for pulse combustors; regulatory constraints; changes in Clean Energy's business plan and corporate strategies; and the various risks and uncertainties disclosed by Clean Energy in its various reports filed from time-to-time with the SEC. Readers are urged to carefully review and consider the various disclosures made by Clean Energy in its various reports filed from time-to-time with the SEC that attempt to advise interested parties of the risks and uncertainties that may affect Clean Energy's business and an investment in its securities.
CONTACT: visit http://www.clean-energy.com/, or contact: Clean Energy Combustion Systems Inc. at (604) 647-6474 or
