+++++++++++++++++++++++++ The Directors are pleased to announce the opening at the "pre- commissioning stage" of the Stapylton Green Power plant south of Brisbane on Friday 12 July 2002.
EnviroStar is aiming to be in a position to deliver electricity into the grid for sale to Energy Australia by the end of the third quarter of this year, generating revenue for the Company. In addition, after the successful commissioning of the plant, EnviroStar expects to commence Stage 2 (20MW) on the Stapylton site.
Photographs of the installation at the construction site are posted on the website http://www.envirostar.com.au.
By this announcement we wish to present:
1 An outline of the CEO's remarks at the pre-commissioning opening 2 The green power plant technology - in summary
CEO'S REMARKS
"This Australian designed and assembled plant represents a milestone in the renewable energy industry for EnviroStar, for Queensland and for Australia.
Stage 1 of this plant will convert green waste which is a disposal and environmental problem for local councils (& by extension the community) into a sustainable supply of electrical energy sufficient for 3,000 households, and without further detrimental affects on the environment. Stage 2 will support an additional 20,000 households.
The Stapylton plant will operate for 20 to 30 years and require at full scale up to 110 contractors during construction and 40 direct long-term employees. It will provide for the employment of a large number of contractors in the supply of fuel and in maintenance and other areas of support.
The plant represents the first step for EnviroStar in the development of its green power projects. It has taken 5 years to plan design and construct. The key component/technology is the fluidised bed combustion reactor and boiler which was originally developed more than 20 years ago and has been refined through many installations throughout the world.
EnviroStar intends to be a leader in the renewable energy industry. Our vision is to build many of these green power plants throughout Australia extend into the Asia.
Through Stage 1 at Stapylton, we will demonstrate the technology's efficiency and viability. We will demonstrate how to produce electrical energy without adverse environmental impact and we will optimize our fuel supplies by working with our suppliers and local councils in the best interests of the community.
EnviroStar Energy is an Australian companies deploying both Australian and international technology. We will seek to manufacture our key components in Australia and to obtain our maintenance support and spare parts from Australian sources.
The global environment is threatened by the wide exploitation of fossil fuels. Pro-active efforts are being made by Governments throughout the world to address this situation. These are illustrated by the mandatory 2% levels for renewable energy which have been imposed on the power companies. This represents in energy terms approx 2/3rds of a new Snowy Mountain Scheme or 100 of EnviroStar's 20MW green energy plants. In some States of Australia these levels are be adjusted to 5%.
Therefore, EnviroStar expects to have no difficulty selling its product into the current market. The expectation is that this market will mature and expand beyond these mandatory demands in the future, with increasing opportunities to market product internationally.
EnviroStar's operations are based on commercial principals. The aim of the Company is to maximize profits to enhance shareholder wealth, whilst minimizing environmental impacts and maximizing the opportunity to secure emission reduction bonuses through Renewable Energy Credits and Carbon Credits and the like."
THE GREEN POWER PLANT TECHNOLOGY - IN SUMMARY
The plant produces electricity by way of an "integrated combustion and gasification process" in a Fluidised Bed Combustion Reactor.
The FBC process works by gasifying the fuel in a "low combustion" fluid bed [comprised of sand and limestone]. Fluid beds represent the most efficient technology for the conversion of waste to energy according to UCLA.
The energy conversion (to electricity) steps are:
1. The fluid bed is able to produce hot gas from the green waste at a "bed temperature" of 850degC
2. The hot gas ignites which causes a "step up" in the temperature to 1200degC which releases an enormous amount of energy
3. The energy is transferred to a boiler containing water [which sits inside the pipes of the fluid bed combustion reactor] and in turn the reactor produces "super heated" steam with high pressure and temperature
4. The steam is used to drive a turbine which generates electricity
5. The spent steam is then recycled to water via an air cooled condenser
Some interesting Statistics for the nominal 20MW base plant:
* A conventional boiler will produce 1 tonnes of steam for every 10 tonne of solid fuel
* The FBC used by EnviroStar will produce 10 tonnes of steam for every 10 tonnes of fuel waste of fuel
Key features of the technology:
* The technology allows for multivariable fuels. For example, garden prunings, grass offcuts, potato peels, onion skins, etc
* Because of the high operating temperature the plant produces very low green house gasses, and no toxic fumes or residues.
* The waste product is fly ash (<10%) which can be used as a building material as it is non toxic and inert
* The capital cost for the base 20 MW plant approximately $1.5M/MW which is comparable to a conventional thermal power station and which makes the EnviroStar green power solution very competitive when compared to other renewable energy projects.
* The world wide patents for the process were established 20 years ago and the technology has been refined since then - therefore the technology is proven for a wide range of fuel types. There are many of this type of fluidised bed in operation throughout the world utilising a wide variety of fuels waste from green waste, sewerage sludge and coal tailings.
* The technology is an Australian product which means that the benefits will flow back into the Australian community and economy
ENVIROSTAR'S COMPETITIVE ADVANTAGES
* The fluidized bed combustion technology used by EnviroStar is provided under an exclusive license to the Company
* The green power plant has a sustainable competitive advantage because the capital cost approximates that for conventional power stations
* The Stapylton 5MW plant is a fully commercial operating plant with 5 year PPA with an option to extend by a further 5 years with the largest electrical generating and distribution company in Australia (Energy Australia)
* EnviroStar is currently progressing 4 projects at sites which are at various stages of development. The first are Stapylton Stages 1 and 2, and Morwell. In addition the Company is progressing the permitting and approval process for Huonville in Tasmania and Sommersby in NSW.
ENVIRONMENTAL ADVANTAGES OF ENVIROSTAR TECHNOLOGY
* EnviroStar's green power plant will make a contribution towards mitigating the "true" cost of pollution to the community represented by impact on health, climate changes, land which affects the current generation and future generations. The Australian Government has developed a penalty which will be imposed on the electrical retail companies unless they acquire minimum renewable energy levels. Therefore it is clearly recognized that the current and future environmental costs on the community cannot be sustained
* Internationally - dozens of western countries are known to be vigorously pursuing a similar path and significant pressure is developing to either ratify the Kyoto Protocol or develop a similar broad based scheme
* EnviroStar's plant does not use water to cool the system. A 5MW coal fired plant would consume 150 tonnes of water/hr and would produce 60,000 to 70,000 tonnes of green house gasses/annum (which would include NOX and SOX, CO and toxic ash)
* EnviroStar will be selling its electrical energy into the Mandatory Government Legislation and qualifying for Carbon Credits and Renewable Energy Credits
For further information, see our website (http://www.envirostar.com.au) or contact Malcolm Carson or his predecessor Mr James Kwok who remains as an executive director of the Company.
