JV to Acquire, Bio-Refine, Process and Sell Coal Hydrocarbons
Geotec, Inc. (PINKSHEETS: GETC) announcedtoday that it has signed an agreement with GreenCoal, LLC of Lewistown,Illinois to enter into a joint business venture to facilitate theacquisition of coal sites and initiate a bio-refining process for the saleof coal hydrocarbons located in Illinois, Indiana and Kentucky, as well asother sites to be determined. Geotec also has filed a Form 8-K with theSecurities and Exchange Commission that discloses the execution of thejoint venture agreement and attaches it as an exhibit.
Under the agreement, it is intended that Geotec's proprietaryenzyme/protein technology will be applied to one or more sites identifiedby GreenCoal, LLC through bio-refinery units owned by Ecotec Coal, LLC.Each Ecotec facility will be comprised of bio-refinery units for thegeneration of revenues through the sale of bio-refined coal and theproduction of tax credits by reducing sulfur and nitrogen oxides and heavymetals pursuant to Section 45 of the Internal Revenue Code.
Bradley T. Ray, Chairman and Chief Executive Officer of Geotec, Inc.,commented: "GreenCoal, LLC has commitments to significant coal reservesin Illinois and other states. Geotec will be evaluating the propertiesidentified by GreenCoal, LLC utilizing Geotec's evaluation unit and theprocess, which incorporates our proprietary enzyme/protein technology.
"We will evaluate prospective sites to determine the reductions needed tobe compliant pursuant to Section 45 of the Internal Revenue Code, using thesame proven process utilized at the TecEnergy PA Banning #4 demonstrationsite. The bio-refinery evaluation unit designed and built by Geotec, Inc.along with TecEnergy PA will be transported from site to site over the nextseveral months. Once projects qualify, they will be presented for funding.As disclosed previously, we estimate that the start-up costs for eachbio-refinery facility will require approximately $10 million in capital."
Mr. Ray concluded: "Locating substantial resources such as those availablethrough GreenCoal is another step in the development and commercializationof the Geotec technologies and processes. First, we needed to prove ourproprietary enzyme/protein technology, which was independently tested;then, we needed to show the feasibility of scaling up to commercial levels,which we are doing with TTI Technologies, Inc.
