LLEG - Laidlaw Energy Group, Inc. Issues Shareholder Update
NEW YORK, Sep 27, 2006 (BUSINESS WIRE) -- Laidlaw Energy Group, Inc. (OTC: LLEG) President & CEO, Michael B. Bartoszek, issued today the following update to the shareholders of Laidlaw Energy:
Dear Shareholders:
Robert F. Kennedy once said, "Few will have the greatness to bend history; but each of us can work to change a small portion of events, and in the total of all those acts will be written the history of this generation..." This excellent quote evokes current events in the energy markets, where we have experienced a dramatic shift toward embracing renewable energy generation as a necessary part of our overall energy consumption in order to improve the environment and reduce our dependence on costly fossil fuels. Just as RFK stated, despite their small individual size, as more projects come on line, the combined impact of all of these green sources of energy will reduce our need for fossil fuel fired generation and permanently change our environment for the better.
Late last week I spent a day on Capital Hill in Washington, D.C., meeting with various members of Congress, and in particular, members of the New York congressional delegation. The one resounding point that came out of these meetings is that the time for renewable energy in the United States has come and with the passage of the Energy Policy Act of 2005, the government is prepared to provide significant support for the development of renewable energy projects. In one notable meeting I had with Sentator Clinton of New York, the Senator
pointed out that utilizing biomass (i.e., wood chips) to make energy as we do at Laidlaw Energy "just makes so much sense". We create jobs, we create a cleaner environment and we reduce dependence on foreign fossil fuels. It is in the context of this significant paradigm shift in the energy markets that I am writing to provide you with a brief update on our current progress and forward-looking game plan.
As we announced back in June of this year, we closed on $5 million in growth financing, which is being utilized to develop our biomass energy combined heat and power project in Western, New York. The project involves the conversion of a natural gas fueled cogeneration project to clean wood biomass fuel. In addition to generating nearly 7 megawatts of green energy, the project will provide heat and steam to a related hardwood lumber drying business. Since the time of the financial closing, we have purchased the requisite equipment for the
project and made good progress on preparing the site for construction, which will commence once we receive all of our permits. We believe this project is on track to commence commercial operations in mid-2007.
The relationship we have forged with our financial partners on the New York project is an excellent opportunity for Laidlaw Energy. As the largest generator in the Dominican Republic and with 1,200 megawatts of generation under management, they have significant resources to support our efforts to build a large portfolio of renewable energy projects. When you combine our knowledge in the biomass energy sector and their experience as developers of major energy projects, the result is a great development team. In addition to the New York project, we are currently working with them on two other biomass energy projects that we feel will be great additions to our portfolio.
One of these projects involves the acquisition and refurbishment of a 16 megawatt biomass energy facility located in New Hampshire. We are currently actively working on this project and hope to close on this transaction in the near future. We currently estimate that this project will be on line during the third quarter of 2007.
A second project that has garnered a lot of our attention involves the relocation of a non-operating biomass energy plant to a new location, where it will provide electricity, as well as heat and steam, to a large manufacturing business. We feel the economic opportunity presented by this project is excellent.
Lastly, we have been actively seeking additional project opportunities and acquisition candidates. There are a number of biomass energy plants in the Northeastern United States with expiring power purchase contracts that may provide for an opportunity to acquire and upgrade these plants to comply with the current renewable enegy standards in order to maintain their economic viability. We intend to actively pursue these opportunities.
In conclusion, I believe that we are in the early stages of a
revolution in the way we make energy in the U.S. I believe that as times passes, we will see an even greater emphasis on biofuels and on utilizing as close to 100% of cellulose products as possible. So it will become standard practice for wood residue from manufacturing and forestry to be shipped to a biomass energy facility, where the fermentable sugars will first be extracted for the manufacture of cellulosic ethanol, with the residue then serving as feedstock for a boiler where it will make electricity and thermal energy. I am glad to say that Laidlaw Energy is a participant in the energy revolution that is reshaping the future of energy production. I sincerely hope that you come along with us for this exciting journey.
Sincerely,
Michael B. Bartoszek
President & CEO
About Laidlaw Energy Group
Laidlaw Energy Group (LLEG) is engaged in the development of independent power plants that generate electricity from renewable resources. LLEG's mission is to build and manage a profitable portfolio of renewable energy facilities through development, acquisition, conversion of existing facilities and through partnering with manufactures that have significant electric and thermal needs. LLEG is headquartered in New York, New York. For more information on LLEG, please visit our website at NYENRG.com.
SOURCE: Laidlaw Energy Group, Inc.
CONTACT:
Laidlaw Energy Group, Inc.
Michael B. Bartoszek, 212-480-9884
info@LaidlawEnergy.com |
