STAMFORD, Conn., March 22 /PRNewswire/ -- Plasma Leasing LLC, upon the
most recent return from Poland of its president, Robert Loonin, announced
today that the Company's financing for numerous Startech Environmental Plasma
Converter projects in Poland is nearing completion.
"The Plasma Leasing team has been engaged in an intense effort since the
summer of 2004. Working closely with all of the Startech customers in Poland,
we assisted in the development of the necessary credit documentation required
for the funding of their projects on a twelve to fifteen-year basis," said
Robert Loonin. "Since July of 2004, I've made eight extended trips to Poland
to work with the Startech customers, their accountants, lawyers, environmental
groups and government officials. This had to be done to produce the necessary
documents and company formats to allow for a sound financial structure, all of
which must conform to the laws and regulations of Poland, the European Union
and the United States.
"This has been a daunting, expensive and time-consuming challenge that, I
am pleased to say, is now behind us.
"Plasma Leasing now has a formidable team on the ground in Poland. We
have the law firm of CMS Cameron McKenna, based in the UK, that represents the
Company in all its efforts in Poland and throughout Europe. CMS Cameron
McKenna is the largest law firm in Poland. Through its direct and CMS
affiliate offices in 37 countries, it has the ability to fully support Plasma
Leasing's financing efforts in most locations where Startech customers may
desire financing. The structure and methodology developed in the seminal
transactions in Poland are now readily available to transfer to other
countries. Also, the accounting firm of Ernst and Young, one of the 'big
four,' has been engaged to provide financial planning, tax advice, financial
oversight and annual audits for all of the financing transactions that Plasma
Leasing produces for Startech customers and also for the Plasma Leasing
companies recently formed in Poland.
"Many of the contractual documents and protocols that that we have
developed did not previously exist in the commercial customs and practices in
the 'New Poland.'
"We have also teamed with some of the largest financial bank partners in
Europe and in the U.S. They understand what we are doing and regard these
financings as a significant growth product for their businesses. Their
support allows us to finance virtually any size project that Startech brings
to Plasma Leasing. Our package now encompasses complete, long-term project
financing that includes all equipment, land, building and complete site
development. The package will even provide the customers with working capital
to assist them in the startup phase of their business.
"In addition, we are working closely with STRABAG, one of the largest
engineering companies in Europe employing over 40,000 people. STRABAG will
undertake engineering and construction tasks that include site work, building
and installation.
"We have recently formed two companies in Poland: Plasma Leasing Poland I
Spolka Z. o o. and Plasma Leasing Poland II Spolka Z. o. o. They will be the
organizations through which two of the financing contracts will be held.
"During the past eight months, our Plasma Leasing team has worked
diligently with the lawyers and customers and customers' clients to create the
necessary 'Take or Pay' long-term and short-term waste supply contracts, as
well as numerous other financial documents, including the 'Power Purchase
Agreements' and twelve to fifteen year financial projections.
'Take or Pay' contracts require the waste generator to commit to supply
waste at an agreed to price for processing over a length of time. If
there is a shortfall in the amount of waste, then the generator has to
make up the tipping fee shortfall by a proportional cash payment.
A 'Power Purchase Agreement' is one wherein the Electric Power Company
agrees to buy the electric power generated by the Plasma Converter
facility owner from the waste the facility processes.
"The current status of the various Startech projects in Poland being
financed by Plasma Leasing is as follows:
"Chempol - 10 Ton Per Day System - Initial cash investment has been
completed. All waste supply and off-take agreements are completed. Final
financial underwriting is in progress. Lease funding is expected between
April 15 to April 30, 2005. The value of the project is approximately
$10,400,000 including VAT.
Plasma Leasing has already made initial cash investment in Chempol Spolka
Sp. Z. o o., whose first 10 Ton Per Day System will be released for
manufacturing in May of 2005.
"EkoLogia - This Project has grown from a 10 Ton Per Day to a 100 Ton Per
Day System due to the availability of a long-term supply of high-value
hazardous and toxic organic wastes from a large waste supplier. Growth in the
project size is also due to the request from a leading chemical company,
adjacent to the site, to purchase large volumes of carbon monoxide (CO) gas
that will be available from the operation of this Startech system.
"Here is a situation where the CO component of the PCG (Plasma Converted
Gas) is the commodity more highly valued by the purchaser of the gas than the
hydrogen component of the PCG. PCG is the clean synthesis gas produced by
Plasma Converters when processing most wastes. PCG is comprised principally
of hydrogen (H2) and carbon monoxide (CO). CO is a fundamental chemical
building block necessary for the production of hundreds of chemical industry
products. Ekologia is also currently in the process of negotiating the sale of
the hydrogen component of the PCG.
"The value of this project has grown to $46 million, not including VAT
costs. All of the contracts and agreements will be completed by April 30, 2005
after which we will immediately proceed with the financing phase of the
project. Financing should be completed in June 2005 with the release for
manufacturing immediately thereafter.
"EkoPlazma - 10 Ton Per Day System - Initial site work has been provided
and completed by the local City Government. The City Government owns 5% of
the project.
"The waste supply contracts that have been signed to date are not quite
large enough to support the complete financing. However, the principals of
EkoPlazma are currently in productive negotiations with several larger
companies for the supply of waste on a 'Take or Pay' basis. The principals of
the EkoPlazma have also been asked by the two surrounding municipalities if
they could provide processing for up to 400 Tons Per Day of Municipal Solid
Waste. We are currently assessing the economics of such an expanded program
with the company. We expect funding of the 10 TPD project in July of 2005.
The value of the 10 TPD projects approximately $10,500,000.
"EcoGroup - Conseil and Petro Nova projects - Each of these $140,000,000,
300 Ton Per Day, projects has received the necessary approvals for the
installation of the equipment.
"Both companies have executed 'Take or Pay' waste supply contracts for
twelve years with medium-sized companies. EcoGroup is now in the process of
executing four to five additional waste supply contracts, each project with
much larger waste generators and haulers in order to augment the long-term
contact. These additional contracts range from 3 to 4 years in length with
automatic renewals.
"Simultaneously, they are negotiating long term Power Purchase Agreements
with a large electrical power company for the purchase of the power that will
be generated from each project; as well as Steam Purchase Agreements with both
local industry and the local district heating companies of the area. In
Poland, with its extended cold weather season, a very high percentage of the
residential and commercial buildings are heated with steam generated by large
central heating plants. These plants are all coal-fired and are generators of
substantial air pollution.
"We expect these projects to be ready for the final underwriting phase by
May 15, 2005 and are targeting funding for one project by June 15, 2005 and
the other by July 15, 2005. A manufacturing release will be issued
immediately thereafter. There is still a considerable amount of documentation
to be assembled for each project, but both are now proceeding at a very rapid
pace. The negotiation of these agreements in Poland is a time-consuming
process that must be conducted in both the Polish and English languages.
"Other Projects in Advanced Stages of Development - During the efforts of
the Plasma Leasing team in Poland, we have found additional opportunities for
the sale of Startech Plasma Converter Systems in several other valuable and
high-need locations.
"Plasma Leasing is currently developing the financing for two additional
300 and 900 TPD projects in Poland. The sites have been specified and the
approvals for the installations issued. The contracts for the waste supply
'Take or Pay' contracts are currently being negotiated. In both projects,
there is a buyer for the PCG and the power generated. As soon as these
agreements are completed, we expect the final details for the purchase of the
Plasma Converter Systems to be negotiated with Startech.
"We are also working on additional projects in other European countries
for the financing of Plasma Converter Systems that will fit generally fit into
the same format that has been crafted in Poland. Finally, we are working on
other projects that will be standard lease financing efforts. These projects
do not require the extensive project financing work that has been the norm in
Poland."
For further information, please contact Robert Loonin at
e-mail plasmaleasing@optonline.net
Safe Harbor for Forward-Looking Statements
This press release contains forward-looking statements, including
statements regarding Plasma Leasing's plans and expectations regarding the
development and commercialization of its financing business. All forward-
looking statements are subject to risk and uncertainties that could cause
actual results to differ materially from those projected. Factors that could
cause such a difference include, without limitation, failure of the customer
to obtain appropriate financing for the project, general risks associated with
product development, manufacturing, rapid technological change and competition
as well as other risks. The forward-looking statements contained herein speak
only as of the date of this press release. The Company expressly disclaims
any obligation or undertaking to release publicly any updates or revisions to
any such statement to reflect any change in the Company's expectations or any
change in events, conditions or circumstances on which any such statement is
based.
SOURCE Plasma Leasing LLC
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CONTACT:
Robert Loonin for Plasma Leasing LLC,
plasmaleasing@optonline.net
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