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Standard Energy Corporation Releases Details Of Proposed Mayfair Energy Project
Reilly Township, Schuylkill County, PA Project to Process
Municipal Waste into Recyclables and Ethanol Fuel
SALT LAKE CITY, July 27 /PRNewswire/ -- Standard Energy Corporation (OTC Bulletin Board: STDE) and its wholly-owned subsidiary, Mayfair Energy Corporation, today announced details of plans for the construction and operation of a $275,000,000 ethanol production and municipal waste recycling facility to be located in Reilly Township, Schuylkill County, Pennsylvania, upon receipt of necessary approvals from state and county authorities. The Mayfair Project facilities will be a processing center only, storing neither incoming municipal waste nor outgoing recyclables or ethanol fuel.
Only household and non-industrial municipal waste will be processed at the Mayfair Energy facilities. It will be delivered in sealed containers on flatbed rail cars. The full containers will be mechanically unloaded and empty containers reloaded onto the same rail car inside the main processing building. All recycling activities will take place within the main building employing new and existing technologies to eliminate noise, dust and odors associated with handling municipal waste.
All recycled items, such as the inorganic metals, glass, plastics and dirt will be separated from the waste stream for re-marketing as clean saleable recycled products. The remaining organic waste materials, primarily paper, yard and food wastes, will be processed into ethanol and boiler fuel. Use of the Company's proprietary Biofuels Technologies will result in the complete elimination of the need to landfill any of the processed waste.
At full production, approximately 70 professional, technical and administrative employees and 430 hourly employees will staff the Mayfair Energy facilities. The waste recycle portion of the Project will operate on a two-shift schedule and process approximately 6,000 tons of waste each day, or some 2,000,000 tons per year. The ethanol fuel production portion of the Project will operate on a three-shift schedule producing about 235,000 gallons of ethanol daily or some 77,000,000 gallons annually. Ethanol fuel produced at the Project facilities will be transported by rail car tanker on a daily basis to oil refineries located in Philadelphia and New Jersey.
To learn more about the Company's technologies and other information see attached Information Sheet that is part of this press release.
STANDARD ENERGY CORPORATION (OTC BB: STDE)
INFORMATION SHEET
Biofuels Technology
Standard Energy Corporation (the "Company") has spent 18-years and $12,000,000 developing its Biofuels Technology for the recycling of municipal waste into recycled products and feedstock for the production of ethanol fuel. This profit generating solution for two major national contemporary issues will significantly reduce the volume of municipal waste that must be disposed of in landfills, while providing a low-cost method of producing ethanol -- the only commercially available renewable low-polluting transportation fuel.
The Company's Biofuels Technology is comprised of four elements:
1. Receiving and separating inorganic products including aluminum, copper,
steel, iron, glass, plastics, sand, gravel, dirt, etc. ("Salvage")
from municipal waste and selling them into the existing commercial
Salvage market.
2. Harvesting organic cellulosic materials ("Celmat") consisting of paper
products, yard and wood wastes, etc. which is about 60% of the total
volume of municipal waste, for processing.
3. Reducing Celmat into inverted sugars and lignin. The inverted sugars
from inside the woody cell walls of all plant life are converted into
fermentable sugars for use as feedstock for ethanol production. Lignin
is the polymeric substance and cementing material that forms the woody
cell walls of all plant life.
4. Generating a clean burning boiler fuel from lignin and Salvage plastics
together with natural gas to supply all the electrical needs of the
municipal waste recycle plant. Lignin may also be a useable plastics
resin replacement in the petro-chemical industry.
Mayfair Energy Project
The proposed Mayfair Energy Project (the "Project") consists of a state-of-the-art grassroots municipal waste fed recycle plant, Celmat fed ethanol production plant and a 35 megawatt lignin/natural gas fired power plant, all to be located in Reilly Township under a 25 year property lease agreement, subject to receiving permit approvals from Schuylkill County changing the use of the Reilly Township property from coal mining to ethanol production using municipal waste as feedstock material. $275,000,000 of equity and debt financing has been arranged through New Jersey based Triad Associates, subject to permit approvals.
Detailed engineering design of the Project is expected to be performed by Saulsbury Engineering Company. Construction and management will be managed by a joint venture of W.J. Scales & Co. and Limbach Company. Limbach Company is a construction unit of Enron Corporation (NYSE: ENE). Initial construction of 2-modules to process 500 tons per day of municipal waste each is projected to take 12-months. After the 2-modules are operational and proof of concept is achieved, 10 additional modules will be constructed in two phases. The 12-module design will have recycling and processing capacity for approximately 2,000,000 tons of municipal waste annually. At full capacity, processing of waste would yield about 1,200,000 tons of Celmat per year and would produce about 77,000,000 gallons of ethanol annually. During the approximate 30-month construction period, a requirement for 200 construction jobs is projected.
Landfill Facts
In 1997, the Environmental Protection Agency estimated that Americans produced an average of 4.4 pounds of garbage per day. In many cities, the cost of handling municipal waste is the fourth biggest item -- after education, police and fire protection -- in the budget. Landfills receive "tip fees" for the waste they bury. In the Northeast, these fees range from $40 per ton to $70 per ton. The tip fee Mayfair will receive at the Reilly plant, together with the earnings from sales of recyclables, will result in low-cost Celmat feedstock for the production of ethanol. At full production, the Reilly plant will eliminate the need for landfill space for 6,000 tons per day of municipal waste.
Ethanol Fuel Facts
Ethanol is a 113 octane rated non-toxic automobile fuel that has no sulfur, nitric oxides (NOX) or carbon residue. It is rated at 85,000 BTUs per gallon, compared to gasoline's 125,000 BTUs per gallon. Ethanol is used to extend gasoline supplies and produce premium grade gasolines that make gasoline burn more cleanly. Many gasoline blenders use ethanol to satisfy federal air-pollution rules. Demand for ethanol exceeds current supply.
E-85 fuel is a mixture of 85% ethanol and 15% gasoline that has an octane rating of 100. It is currently marketed only in the upper midwest states. High ethanol blends are the current fuels of choice in Brazil. The low gasoline to ethanol ratio of E-85 fuel significantly reduces the sulfur and NOX content in the blend to promote cleaner air with virtually no manufacturing cost increases.
ETBE, produced from ethanol, is an octane enhancer and oxygenate for reformulated gasolines that can replace methanol based MTBE with minor one-time production changes. ETBE is not carcinogenic (a cause of cancer) and contains almost double the BTU value of MTBE. MTBE is derived from petroleum and is not only carcinogenic, but also generates greenhouse gases. The Environmental Protection Agency has raised concerns about the impact of MTBE on water supplies. It is banned in Alaska, and New York and California have begun phasing out its use.
Manufacturers using traditional grain-based methods of ethanol production most often use corn as feedstock. At current corn prices, production costs are about $1.25 a gallon. These costs fluctuate with changes in the spot price of corn. Because of the synergies of the Biofuels Technologies, and the anticipated $40 per ton municipal waste tip fee, the Project could operate at a steady cost of production of about $0.30 per gallon of ethanol fuel, giving the Company a substantial pricing advantage.
More details of the Project are available in the Company's fiscal 2000 Form 10-KSB. |
