IDM Environmental Receives Letter Of Intent to Build
100 Megawatt Plant in China
Business Wire - May 05, 1998 14:07
%IDM-ENVIRONMENTAL IDMC %NEW-JERSEY %ENVIRONMENT %ENMED %ENERGY
%UTILITIES V%BW P%BW
Jump to first matched term
SOUTH RIVER, N.J.--(BUSINESS WIRE)--May 5, 1998--IDM Environmental Corp.
(NASDAQ:IDMC, IDMCW) today announced that its subsidiary, IDM Energy
Corporation, along with its partner, China Direct, Inc., has received a Letter of Intent from the
Heat and Power Plant of Shexian County, Hebei Province the People's Republic of China
(PRC), to establish Hebei Qingzhang Huada Heat and Power Corp., Ltd. This venture will
design, construct and operate a 100 megawatt (MW) heat and power plant in Hebei, the
province surrounding cities of Beijing and Tianjing. IDM will own a majority interest in the
project; the balance will be shared by China Direct (a project development and financial
organization), and the government of Hebei Province.
It is estimated that annual revenues from the operation of the energy and steam plant will be
$48 million, with operating margins expected to be at least comparable with energy industry
average returns. It is also contemplated that guarantees will be obtained from the Power
Administrative Bureau of Shexian County of Hebei Province and a PRC-based multi-billion
dollar manufacturer to purchase at least two thirds of the plant's annual electric power
production and steam production, respectively. The energy and steam purchase contracts will
be for an initial 20-year period. Total construction costs for the plant are estimated at $120
million. It is anticipated that the plant will be operational within 18 months after
commencement of construction.
In announcing the projects, IDM Chairman, Frank Falco, commented: "As we have planned
and projected, IDM has continued to advance the development of our energy business
worldwide. The Hebei Province project -- one that is projected to yield annual recurring
revenues of $48 million -- is the latest of the projects for which we have obtained
commitments and are actively pursuing."
Falco added that accounting for this project, IDM is currently involved in the development of
energy projects that will be designed to produce more than 300 MW of electricity, including
the previously announced projects in El Salvador, Taipei, Szczecin, and the Country of
Georgia. It is anticipated that these projects will yield recurring annual revenues in excess of
$100 million, as summarized in the table below.
IDM ENERGY PROJECTS SUMMARY
(Dollars in Millions)
Annual Estimated
Project Production Revenues Startup
Miravalle, El Salvador 45 MW $25 1999
Taipei, Taiwan 10 6 1999
Szczecin, Poland 15 30 2000
Country of Georgia 100(a) 22 1999
Hebei Province, PRC 100 48 2000
(a) Initial phase. Production could be up to 1,000 MW over 3 to 5 years. Source: IDM
Environmental Corp.
The foregoing discussion contains forward looking statements which are based on current
expectations. Actual results, including the timing and amount of revenues recognized, contracts
awarded and performed and net income, may differ materially due to risks and uncertainties,
including: inability to negotiate an acceptable pricing structure for the sale of electricity;
possible fluctuations in demand for energy; the present lack of a funding source to finance
construction of the proposed facility; possible cost overruns in the construction or operation of
the facility; delays in payment on contracts due to dealing with governmental and foreign
entities; fluctuations in operating costs associated with changes in project specifications and
general economic conditions; substantial fluctuations in revenues; economics, and other
conditions affecting the ability of prospective customers to finance projects; and other risks
generally affecting the timing and financing of projects.
IDM Environmental Corp., headquartered in South River, is a diversified services company
globally offering a broad range of design, engineering, construction, project development and
management, and environmental services and technologies. The company, through its
domestic and international affiliates and subsidiaries, offers services and technologies in three
principal areas: Energy Project Development and Management, Environmental Remediation,
and Plant Relocation Services. Capitalizing on more than 20 years of project engineering
experience in environmentally sensitive settings, IDM (1) has entered into and is actively
involved in the design, development, ownership and operation of energy facilities in the
developing nations of the world, (2) has entered into and is actively involved in the
decommissioning and site industrialization and revitalization of nuclear power plants, (3) has
established a position as a world leader in plant dismantlement, relocation and re-erection
services, and (4) is a leading provider of full-service turnkey environmental remediation
services. In addition, IDM is active in the development and commercialization of a number of
proprietary technologies in the fields of bioremediation/superoxygenation of water, gasification
of solid waste, and soil remediation.
CONTACT: BGS Associates Inc.
Leonard Bogner, 212/593-5323 or 212/689-1214
|
