WALNUT, Calif., Feb. 9, 2015 /PRNewswire/ -- VIASPACE Inc.
(OTC: VSPC) announced that the comprehensive, independent
feasibility study conducted by Pelican SA of the 12 MW biomass
power plant and co-located 834 hectare (2,060 acre) Giant
King® Grass plantation project in Nicaragua has been completed. The feasibility
study addresses the technical and economic issues of both the
plantation and power plant, including connection to the Nicaraguan
power grid.
The six month feasibility study is 147 pages long, plus major
appendices. It is now being provided on a confidential basis to
bankers and potential investors in the project. Energia Reino Verde
(Green Kingdom Energy in English) is the special-purpose company
formed to own and operate the Nicaragua power plant and plantation.
Summary and Conclusions of the Feasibility Study
The proposed integrated Energia Reino Verde 12 MW biomass power
plant and co-located Giant King Grass (GKG) plantation is both
feasible and bankable. In addition to GKG, the power plant will be
fueled by rice husk as a secondary fuel and rice straw as a backup
fuel.
This conclusion is based on an extensive review of the
agriculture plan, fuel logistics, power plant technology, grid
interconnection plan, construction costs and operations.
Environmental, permitting and legal issues were also examined.
The main conclusions of the feasibility study are:
- Giant King Grass is suitable as
the fuel. Rice husk is available at the site as an additional fuel,
and rice straw is available at the site and nearby areas as an
auxiliary backup fuel.
- The Giant King Grass plantation is very similar to a sugarcane
plantation and will utilize best practices from the sugarcane
industry.
- The Giant King Grass plantation will be located on the 4,200
hectare Miramontes plantation that is currently growing rice on
2,800 hectares. Irrigation from Lake Nicaragua is available as are
plantation and power plant workers in the region.
- A major advantage is that the Giant King Grass plantation and
power plant will be co-located and the average distance between the
GKG fields and the power plant is 3 km, which considerably
simplifies logistics and minimizes need for storage.
- Based on the experience of the sugarcane industry, a
semi-mechanized approach to cutting and loading is recommended. In
most of the world, these activities are done fully manually and
this is certainly feasible in Nicaragua.
- The biomass power plant will be nearly identical to a bagasse
co-generation power plant at a sugar mill, except that the boiler
will be replaced with a boiler that can handle the proposed fuels
that have specific corrosive properties related to chlorine
content, and the propensity for slagging due to low melting
temperature ash.
- The proposed boiler technology is well proven for corrosive
fuel such as straws and grasses.
- The EPC contractor proposed by the Project developers is very
experienced and has built many power plants throughout the
world.
- The biomass power plant is located 9 km from a grid connection
point, which is a reasonable expense for the proposed size of the
project.
- Power plant operations are planned to be contracted to an
experienced company.
- The costs and financial projections for the ERV project have
been validated.
- The renewable low carbon electricity produced will be sold
under a Power Purchase Agreement. The plant will produce reliable
base electricity and would also be eligible for capacity
contracting.
- Permitting activities are underway. The non-objection from the
Ministry of the Environment has been issued. A Provisional
Generation License request has been submitted to the Ministry of
Energy and Mines.
- The project developers have built a strong support team for the
project, including Agricorp, which is one of the largest and most
respected companies in Nicaragua,
with annual revenues exceeding $150
million, IC Power (2nd largest IPP in Nicaragua) and Pro Nicaragua, the government
investment promotion agency.
VIASPACE CEO, Dr. Carl Kukkonen,
stated, "We are pleased that the Pelican SA feasibility study has
formally validated the technical and business case for our Energia
Reino Verde power plant integrated with the Giant King®
Grass plantation. We believe that we have all of the bases covered
and the potential risks have been mitigated.
- we are growing our own Giant King® Grass and not
depending on third parties for fuel
- irrigation from Lake Nicaragua will be used during the dry
season
- rice husk and rice straw from the 7,000 acre Miramontes rice
plantation and mill are available as backup fuel sources.
- AGRICORP, the VIASPACE partner and one of the largest companies
in Nicaragua is extremely
experienced in agriculture
- the power plant and plantation are co-located for simple and
cost effective logistics
- the EPC contractor has worldwide experience
- the boiler technology is well proven
- the power plant operator is very experienced in Nicaragua
- the project rate of return is acceptable for financing
- Nicaraguan partners will be equity investors and have a vested
interest in our success"
Kukkonen continued, "The Energia Reino Verde power plant project
will produce 84GWh of saleable renewable and low carbon electricity
per year for a project life of 25 years. This will be a flagship
project and VIASPACE plans to replicate similar projects
worldwide."
VIASPACE Chairman, Dr. Kevin
Schewe, commented, "VIASPACE Inc. (VSPC) and investors and
executives of Agricorp are the project developers and equal
shareholders in Energia Reino Verde. Equity investors will also be
shareholders. All future profits from Energia Reino Verde will
accrue to VIASPACE proportional to VIASPACE's ownership. In
addition, VIASPACE will receive Giant King Grass license revenues
from Energia Reino Verde as the Giant King Grass is harvested to
fuel the power plant during the 25 year project life. This is the
preferred business model that VIASPACE seeks to develop with its
renewable energy power plant partners."
Dr. Schewe concluded, "The Nicaraguan government policy is to
move to 97% renewable energy and low carbon fuels before 2030. This
project fits perfectly into their planning strategy as they are
looking for reliable base load electricity and projects that can
provide regulation and capacity services. Our Nicaraguan and
Agricorp partners have shown tremendous leadership, initiative and
diligence to move this renewable and carbon-neutral 12 MW power
plant project forward and we feel very fortunate to be an integral
component of such a strong team."
About VIASPACE Inc.
VIASPACE grows renewable Giant
King® Grass as a low-carbon fuel for clean electricity
generation; for environmentally friendly energy pellets; and as a
feedstock for bio-methane production and for green cellulosic
biofuels, biochemicals and biomaterials. Giant King®
Grass is a proprietary, high yield, dedicated biomass energy crop.
Giant King® Grass when it is cut frequently at 4 to 5
feet tall is also excellent animal feed. The USDA granted approval
for planting Giant King® Grass throughout the US and
cooperates in exporting by performing the required inspections and
issuing the phytosanitary certificate needed for import into
foreign countries. Giant King® Grass is being grown in
California, Hawaii, St. Croix Virgin Islands, Nicaragua, South
Africa, China, Myanmar, Pakistan, Philippines and Guyana. For more
information, please go to www.VIASPACE.com or contact Dr.
Jan Vandersande, Director of
Communications, at 800-517-8050 or IR@VIASPACE.com.
Safe Harbor Statement
Information in
this news release includes forward-looking statements. These
forward-looking statements relate to future events or future
performance and involve known and unknown risks, uncertainties and
other factors that may cause our actual results, levels of
activity, performance or achievements to be materially different
from those expressed or implied by these forward-looking
statements. Such factors include, without limitation, risks
outlined in our periodic filings with the U.S. Securities and
Exchange Commission, including Annual Report on Form 10-K for the
year ended December 31, 2013, and
other factors over which VIASPACE has little or no control.
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SOURCE VIASPACE Inc.