Is this the "SGI International,, *NEWS* With the ($2.4 billion Rev producing energy firm from,Illionis) your talking about?
LA JOLLA, Calif., May 25 /PRNewswire/ -- SGI International (OTC
Bulletin Board: SGII) and Illinois Power have executed an agreement for
Illinois Power to purchase all upgraded coal produced by SGI from the
Liquids From Coal (LFC) demonstration plant located near Gillette,
Wyoming, which SGI is acquiring from AEI Resources. Shipments under
this agreement are expected to begin in early 2000 and continue through
December 31, 2004. Pursuant to this agreement, SGI has the option to
divert up to 100,000 tons each year to other parties for test burns in
order to develop additional customers and markets for the upgraded
coal. The agreement also provides Illinois Power with an option to
purchase up to 500,000 tons-per-year of upgraded coal from a
large-scale commercial LFC plant at North Rochelle.
SGI's upgraded coal is produced by subjecting sub-bituminous or lignite
coals to a patented pyrolysis process. Based on the operations of the
demonstration plant, it is expected that the upgraded coal will contain
about 30% more Btu's and 25% less sulfur than the feed coal. It will
retain the low nitrous oxide attributes of the Powder River Basin (PRB)
feed coal. The process also produces, as a co-product, a
low-temperature coal tar that will be further processed into chemical
feedstocks and fuels to be sold to other parties.
Joseph A. Savoca, SGI Chairman/CEO stated, "We appreciate Illinois
Power's acknowledgement of our product's ability to play a significant
role in an energy future that will be ever more economically
competitive and environmentally challenging. This progressive attitude
provides SGI with the momentum to start up the demonstration plant,
develop product markets and then build a number of commercial LFC
plants."
John Spencer, Director Fuel and Technical Services, Illinois Power
said, "SGI's upgraded coal combines the clean burning attributes of PRB
coals with the high-Btu content of bituminous coals used by our Wood
River and Havana Stations."
SGI International's core business is developing, commercializing and
licensing new energy technologies. Its corporate headquarters are in
La Jolla, California.
Illinois Power, an electric and natural gas utility, has approximately
3,800 megawatts of fossil-fueled generating capacity and serves 650,000
customers over a 15,000-square-mile area of Illinois. It is a
subsidiary of Illinova Corp. (NYSE: ILN), headquartered in Decatur,
Ill., an energy services holding company with annual revenues of $2.4
billion.
This news release contains forward-looking statements. Actual
results could vary from those expected due to a variety of risk
factors, including, but not limited to, the completion of the
acquisition from AEI Resources, the timely start up of the
demonstration plant, obtaining financing, producing upgraded coal to
specifications and marketing of the LFC products, as well as the other
risks included in the Company's 10KSB and other public filings.
SOURCE SGI International
-0- 05/25/99 /CONTACT: Nancy C. Propp of
SGI International, 619-551-1090/
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