Electricity Facility Expects to Begin Construction in 2013
CALGARY, May 17, 2012 /CNW/ - EmberClear Corp. (TSXV: EMB)
("EmberClear") plans to increase the power generation at the Good
Spring Power Plant ("Good Spring Power"), in Schuylkill County,
Pennsylvania from 270 MW to 300 MW. The 300 MW Natural Gas Combined
Cycle ("NGCC") power plant is a variation of the previously announced
270 MW advanced coal Integrated Gasification Combined Cycle ("IGCC")
power plant, named Good Spring IGCC. This change results from the
recent emergence of favourably priced long-term contracts for natural
gas. EmberClear plans to enter a long-term natural gas contract to
supply Good Spring NGCC in the coming months. Other implications for
this decision include:
-
Natural Gas Fuel Source - Good Spring Power has been permitted to
generate electricity from syngas and natural gas. Originally, syngas
would have been created with coal gasification technology as the
primary fuel with natural gas as a backup fuel source. However,
improving availability and economics of domestic natural gas enables
the project to use natural gas as the primary fuel source. This
modification lowers the project complexity, reduces the capital cost by
at least 60% and accelerates the construction schedule;
-
Accelerating Time to Construction - The lack of regulatory clarity on
emissions for coal-based electricity plants plus the immediate
availability of natural gas provides a strong incentive to use natural
gas as the primary fuel source. EmberClear has begun the contract and
financial closing activities to prepare for construction in 2013; and
-
Choice of Feedstock for the Future - Use of either coal or natural gas
as a feedstock is highly dependent on the differential between either
one of these fuel sources with respect to the price of electricity. As
contract prices for both coal and natural gas have been historically
volatile, EmberClear has the option to use either fuel source. If the
future regulatory environment and economics make the IGCC power plant a
better solution, EmberClear has the ability to build an IGCC plant.
"The price difference between wholesale electricity and natural gas has
grown substantially in the last few months," said Albert Lin, CEO
EmberClear. "With long-term contracts for natural gas being so
competitively priced, a compelling opportunity to quickly move into
contracting and construction with higher than historical returns
presents itself. We intend to capitalize on this market condition."
About EmberClear
EmberClear is an advanced energy development company focused on low
emission energy projects around the world. EmberClear aims to
accelerate the adoption of technologies enabling improvements in the
efficiency and cleanliness of fossil fuel consumption. This objective
is partially enabled through a license to thermal chemistry
technologies developed, over the last two decades, by the Huaneng Clean
Energy Research Institute (HCERI), a subsidiary of the world's largest
power company, Huaneng Power Group of China. EmberClear also holds
surface and mineral rights in Schuylkill County, Pennsylvania. This
property lies in the Southern Anthracite coalfield of eastern
Pennsylvania, USA and is a small portion of the Valley and Ridge
physiographic province of the Appalachian Highlands. EmberClear's
shares are listed on the TSX Venture Exchange under the trading symbol
"EMB". For more information, please visit www.emberclear.com.
Forward-Looking Statement Disclaimer
Certain statements contained in this document constitute forward-looking
statements or information (collectively "forward-looking statements")
within the meaning of applicable securities legislation.
Forward-looking statements are typically identified by words such as
"anticipate", "continue", "estimate", "expect", "forecast", "may",
"will", "project", "could", "plan", "intend", "should", "believe",
"outlook", "potential", "target", "seek", "budget", "predict", "might"
and similar words suggesting future events or future performance. All
statements other than statements of historical fact may be
forward-looking statements. In particular, this document contains
forward-looking statements pertaining to, without limitation, the
following: statements about our intention and ability to construct and
operate a Natural Gas Combined Cycle Power plant. With respect to
forward-looking statements contained in this document, we have made
assumptions regarding, among other things, the following: the economic
viability of an NGCC project, the long term natural gas contract
prices, construction rates, warranties, and availability and energy
needs. Although we believe that the expectations reflected in the
forward-looking statements contained in this document, and the
assumptions on which such forward-looking statements are made, are
reasonable, there can be no assurance that such expectations will prove
to be correct. Readers are cautioned not to place undue reliance on
forward-looking statements included in this document, as there can be
no assurance that the plans, intentions or expectations upon which the
forward-looking statements are based will occur. By their nature,
forward-looking statements involve numerous assumptions, known and
unknown risks and uncertainties that contribute to the possibility that
the predictions, forecasts, projections and other forward-looking
statements will not occur, which may cause our actual performance and
financial results in future periods to differ materially from any
estimates or projections of future performance or results expressed or
implied by such forward-looking statements. These risks and
uncertainties include, among other things, the following: the
volatility of feedstock and offtake and the possibility that EmberClear
will not have the financial or other resources to develop, construct or
operate such plant or other project. Readers are cautioned that this
list of risk factors should not be construed as exhaustive. The
forward-looking statements contained in this document speak only as of
the date of this document. Except as expressly required by applicable
securities laws, we do not undertake any obligation to publicly update
or revise any forward-looking statements, whether as a result of new
information, future events or otherwise. The forward-looking statements
contained in this document are expressly qualified by this cautionary
statement.
Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.
© 2012 EmberClear Corp.
All rights reserved. All other trademarks are the property of their
respective owners.
<p> <b>David G. Anderson</b><br/> CFO<br/> Tel: +1 (403) 264-8817 </p>