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ERHC And Air Group To Build First Titan Oil & Tire Recycling Plant
In Louisiana
PR Newswire - September 04, 1997 12:10
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BROUSSARD, La., Sept. 4 /PRNewswire/ -- Environmental Remediation Holding
Corp. (OTC Bulletin Board: ERHC) announced that it has entered into a joint
venture with Air Group, Inc. of Ft. Lauderdale, Florida for the construction
and operation of an advanced oil/tire recycling and electric co-generation
facility in Louisiana and other potential worldwide locations.
The partners are considering a number of sites for the facility, which
will be modeled after two recycling plants in South Korea built by Titan
Technologies, Inc. (OTC Bulletin Board: TITT) of Albuquerque, New Mexico.
Privately-held Air Group recently acquired the exclusive worldwide marketing
rights and a 50% interest in the application of Titan's proprietary
hydrocarbon recycling technology.
Air Group will provide the use of Titan's technology and necessary funding
for its 51% control of projects shared between Air Group and ERHC. ERHC will
contribute its expertise in oil remediation and hazardous waste cleanup, which
will lead to an ample supply of waste or "slop" oil and other recyclable
hydrocarbon-laden materials. ERHC also brings essential EPA and state
licensing for the transportation, handling, and disposal of hazardous and NORM
(Naturally Occurring Radiation Material) waste. Profits from the joint
venture will be shared equally.
"We are pleased to join Air Group and its partner, Titan Technologies, in
a perfect match of their technology and financial resources with ERHC's
expertise and licensing for oil and hazardous waste clean-up," notes ERHC
President, Samuel L. Bass, Jr. "Titan's technology provides not only an
environmentally safe method of disposal for hydrocarbon waste, but the
potential to turn previously problematic and useless material into resellable,
high-margin products."
Air Group estimates that the Louisiana Titan plant will have the capacity
to process more than 4 million barrels of waste oil per year and to generate
income in excess of $400 million annually -- through disposal and tipping fees
and by sale of the oil, fuel, steel and carbon black produced from its
ecologically-safe recycling system. This would be twice the capacity of the
plant Air Group and Titan will construct in West Virginia.
Using a unique low-temperature process, waste oil is converted to diesel
fuel, gasoline, kerosene and oil extender. One ton of recycled rubber tires
can be converted into 2.5 barrels of oil, 500 pounds of carbon black, and 300
pounds of steel. Through co-generation, the plant supplies its own power, and
can produce excess electricity at about $0.019 per kilowatt-hour.
"Sam Bass' 35 years of experience and extensive contacts in the oil
industry form the basis for a powerful partnership," says John Rivera,
chairman of Air Group and new chief operating officer of Titan Technologies.
"With ERHC as our partner in environmental clean-up and recycling of
hydrocarbon wastes, we gain an abundant source of waste oil, important field
experience, and critical governmental licensing to move our current projects
forward ahead of schedule. We are also better able to respond to communities
around the world in need of solutions to the dilemma of contaminated waste oil
and used tire dumps."
"We expect ERHC to provide at least three million barrels of waste oil
during the first year of operation," Rivera continued, "which is a reasonable
target when compared to the 1.2 billion barrels that the U.S. generates
annually. We also expect the plant to process some of the two to three
billion used tires that pile up every year."
Based on standard industry fees, the joint venture will receive from $50 a
barrel to remove oil-water or bilge water to $2,500 per barrel for hazardous
waste oil. ERHC's license to handle hazardous waste gives the joint venture
access to sources requiring the more expensive disposal. The plant can then
turn around and sell about 80% of the recycled oil as highly-refined extender
oil or fuel oil for more than $50 a barrel.
Concludes Rivera, "Someone pays us a premium to take away the waste, then
someone else pays us again for the recycled product, while the biggest expense
-- energy -- is provided free via co-generation. If you do the math, you can
see the huge potential of this joint venture to generate hundreds of millions
of dollars in revenue that represents mostly profit."
The partners plan to start revenues flowing immediately. Once they select
the plant site, they may begin to stockpile recyclable materials and enjoy
substantial revenues from tipping and disposal fees while the plant is under
construction. A new portable recycling unit may also be put to work.
Titan Technologies is engaged in advanced hydrocarbon recycling and
remediation research. Titan's internationally patented process restores
hydrocarbon waste products to their original states, using low heat to convert
discarded tires to oil, carbon black and steel. Titan's equipment operates
between 400F and 450F, within the normal range of a kitchen oven. Competing
systems typically operate at 1000F and generate a great deal of ash that
contaminates the output. Titan has received sponsorship from a number of
environmentally conscious organizations including Advanced Research Projects
Agency (ARPA), Department of the Air Force, Fina, and Sanda National
Laboratories. The company has two plants operating in Korea and one under
construction in Austria.
Air Group specializes in bringing new and innovative technology to the
marketplace, with a current focus on environmental and computer technology.
Air Group's staff provides expertise in marketing, funding, contracts, and
project management.
Environmental Remediation Holding Corp. is engaged in oil and gas
production activities and environmental remediation, both domestically and
internationally. Through a series of acquisitions, the company has formed a
unique, full service organization dedicated to providing oil and gas related
services to major oil companies and governmental institutions. This includes
the development and rework of oil and gas properties, plug and abandonment
services (P&A), environmental engineering and consultation, hazardous waste
management (including NORM waste), non-hazardous waste clean-up,
transportation and disposal, and the manufacture and distribution of waste
clean-up materials. The company's stock is traded on the NASD OTC Bulletin
Board under the symbol "ERHC" and is listed in Standard & Poor's Corporate
Records.
For more information, visit ERHC's website at " www.erhc.com " Or Titan's
website at " www.titt.com "
This release may contain forward looking statements regarding ERHC's
future plans and expected performance based upon assumptions ERHC believes to
be reasonable. A number of risks and uncertainties could cause actual results
to differ materially from these statements, including without limitation:
fluctuations in the price of crude oil and natural gas, the success rate of
exploration efforts, the timeliness of development activities in Texas, Utah,
and the Gulf of Guinea, West Africa; changes in the political and economic
environment in which ERHC has international operations as well as other risk
factors described from time to time in the company's documents and reports
filed with the Securities and Exchange Commission.
SOURCE Environmental Remediation Holding Corp.
CONTACT: Noreen Wilson, V.P., or Jim Griffin, Director of ERHC,
516-433-9119 or John H. Rivera, chairman of Air Group and COO of Titan
Technologies or Marilyn Chirinsky, president of Air Group, 954-680-2264 or
Investor Relations for both ERHC and Titan: Geoffrey Plank or Fred Johnston of
GFC Communications, 561-655-7575
Bacon Butt News Service (BBNS)
Norm G. |
