Energy Quest Signs MOU for Energy From Waste Venture in Romania

Energy Quest, Inc., an emerging leader in alternative energy and the development and production of hydrogen-enriched alternative fuels in an environmentally responsible manner, today announced the signing of a Memorandum of Understanding (MOU) to establish a joint venture to jointly own and construct the installation of a 500 tons per day of MSW (municipal solid waste) to 20 MW Power gasification plant in Romania with CO.F.A.M.M. (COFAMM) of Romentino, Italy.

Gasification is a chemical and heat (thermo chemical) process used to convert solid materials such as coal, biomass which includes MSW and any carbonaceous materials into a gas for use as a fuel.

“It’s a fairly straightforward process, where solid fuel is converted into a gas and burned in a heat recovery boiler or heater like natural gas,” explained Ouellette. “The gas heats a fluid to a certain temperature and pressure until it turns into steam or a gaseous state, which is fed across a turbine or turbo expander that in turn rotates an electric generator.” We are also proud to state that the facility is extremely environmentally friendly since it will be a near zero emitter in terms or air pollution and greenhouse gases.

The total cost for the plant will be approximately $73 million Euro or $98 million USD. Terms and conditions will be stated in the definitive agreement with a deposit commitment of 20% and financing in place for the total project.

The company will provide the proprietary technologies, equipment and project management for the complete gasification plant, while COFAMM will provide solutions for waste sorting, which provides the refuse-derived fuel (RDF) feedstock for the gasification plant.

RDF is a solid fuel produced by preparing and shredding solid municipal waste. Non-combustible materials such as glass and metals are removed prior to making it. The RDF material is used in shredded form or compressed into pellets. COFAMM manufactures and constructs machines for separation of all components of household garbage.

The waste sorting line recovers steel and non ferrous materials, paper and cardboard, aluminum and steel cans, plastic film and RDF that can be used as fuel to generate the energy the system requires. The facility will generate clean electricity and will be a zero waste facility since recovered steel and glass will be sent to recycling facilities.

EQI and COFAMM have designed a system consisting of four modular units of gasification and 6 MW power enabling the gasification of MSW for the profitable production of alternative green energy. The company plans to rapidly move forward subject to the mutual agreement of the terms and conditions set forth in the project proposal in addition to the completion of a definitive agreement. The main general contractor for the project has not been selected, but Mr. Ouellette said he has a few reputable firms in mind.

The equity of the proposed plant when complete is expected to be $98 million USD. Following commissioning & start up, it’s expected to be completed within 12 months from the signing of the joint venture agreement. The joint venture anticipates immediate cash flows with gross annual revenues of $26.6 million while yielding a net profit of $11.1 million after taxes and debt payment.

“We look forward to getting this project underway and plan on other mutually beneficial opportunities with COFAMM. This project will be the first EQI installation of its gasification to power systems with COFAMM,” stated Wilf Ouellette, President and CEO of Energy Quest, Inc.