(gpe) sells green power to energy australia
25 March 2004 Green Pacific Energy (GPE) sells green power to Energy Australia Australia’s first green waste to energy power plant is now selling electricity to Energy Australia Green Pacific Energy’s first green waste to energy power plant at Stapylton, Queensland, is now exporting clean, green energy through the Energex grid to ultimately power 4,700 homes. Under the executed green energy purchase agreement, Energy Australia, is currently purchasing all electricity generated from this plant for a minimum period of 10 years. GPE will now commence Phase 2 of its expansion plan to construct a further four 20 MW fully approved green power plants in Stapylton, QLD, Morwell, VIC, Bell Bay, TAS and Kemerton, WA respectively as well as a 5 MW fully approved plant in Nowra, NSW. Phase 2 of this plan will generate an additional 85 MW of clean, green energy to power 80,000 homes across Australia. Based on the existing green energy purchase agreement, this will result in additional revenue of about $63million. GPE is also scheduled to commence construction of its coal gasification plant in Dalian, China, in July 2004, to produce 80,000 Nm3 per hour of clean gas (which is the equivalent of 120 MW thermal). The plant has received full approval from all local government agencies as well as profit repatriation from the State Government in Beijing. The revenue from this coal gasification plant is based on a 25 year gas purchase agreement with Liaoning Special Steel Group. This plant is expected to produce an annual revenue of $33million with net profit after tax estimated at about $10 million per annum. Total revenue expected from Phase 2 and the Dalian plant is about $96million per annum with a net profit after tax of about $28million. GPE plans to commence Phase 3 of the expansion plan in about 18 months’ time, with the construction of some 16 additional green power plants. Upon completion, these plants are expected to deliver an additional 290 MW of clean energy to power up to 400,000 homes. Total revenue from the completion of Phase 3 is expected to be about $300million per annum with a net profit after tax estimated to be $90 million per annum. 2 Under Australian legislation, energy retailers such as Energy Australia are obliged to source a minimum percentage of their electricity from renewable energy sources such as that offered by GPE. With the support of business and strategic partners such as Energy Australia, Yokogawa Electric Corporation and TechComm Simulation, combining the Company’s extensive portfolio of reliable and economical green power projects, GPE is well positioned to lead the renewable energy generation market in Australia. Ultimately, GPE’s vision is to become a leading renewable energy generator worldwide. The growing global demand for clean energy presents excellent business opportunities for GPE. Its coal gasification plant in China provides a strong platform for its continued expansion overseas. -ENDSFurther information: Media: David McGrath (02) 9566 0216 or 0410 770 569 (m) Corporate: Edwin Yeung, Corporate Secretary Peter Gan, Chief Operating Officer Phone: 02 92023000 Or visit our website www.greenpacific.com.au
