Abbotsford,, BC -- (ReleaseWire) -- 01/20/2017 --Biomass Secure Power Inc. (OTC: Pinksheets: BMSPF). Biomass Secure Power is pleased to advise shareholders that on January 19th, 2017 the Louisiana State Bond Commission approved the sale of $60 million tax exempt bonds by the Company's wholly owned subsidiary, Biomass Power Louisiana L.L.C. (BPL). The Company has engaged the Bank of America Merrill Lynch to sell the bonds on behalf of the company.
The proceeds of the bond issue will be used to build a new 240,000 tonne/yr, Bio-Coal production facility at the Port of Natchitoches Louisiana. A 20 year off-take agreement has been confirmed for 200,000 tonnes per year of Bio Coal, which is expected to generate annual sales in excess of $40 million per year. The total annual sales from phase one running at 240,000 tonnes/yr is planned to be in excess of $48 million per year.
Biomass Secure Power Inc. and River Basin Energy are in the process of merging the two companies prior to the closing date of the financing round. Additional information about the merger will be released in the upcoming weeks.
The investment at Natchitoches is phase one of a three phase development program that will increase the plant production capacity to one million tonne per year. River Basin Energy has received a MOU to provide a further 500,000 tonne/year to 2,000,000 tonne/year of Bio-Coal. The MOU will be converted to a binding off-take agreement after trial samples from phase 1 operations have been received and evaluated by the buyer as being of the same quality or better than samples already made available from the RBE reactor.
Bio-coal is a torrefied product used to generate heat and electrical power for residential and industrial purposes. Bio-coal is a sustainable alternate to coal in most circumstances. Bio-Coal has a commercial advantage over whitewood pellets as the energy cost is about the same and the CAPEX requirements to convert an existing plant to bio-coal is significantly lower.
About the Company
Biomass Secure Power Inc. is incorporated in the Province of British Columbia. On May 4, 2016 the Company signed a Memorandum of Understanding with River Basin Energy to merge the companies and build a bio-coal plant at the Port of Natchitoches, Louisiana. Public filings and financial information for Biomass Secure Power Inc. can be found at www.sedar.com.
Safe Harbour Statement:
This information includes certain "forward-looking statements". The forward-looking statements reflect the beliefs, expectations, objectives and goals of the Company management with respect to future events and financial performance. They are based on assumptions and estimates, which are believed reasonable at the time such statements are made. However, actual results could differ materially from anticipated results.
On Behalf of the Board,
BIOMASS SECURE POWER INC.
Jim Carroll, President - CEO
Source: Uptick Newswire