GreenHunter Energy, Inc. (NYSE Amex: GRH) GreenHunter Energy’s Board of Directors and senior management made a decision earlier this year to strategically change the corporate direction to concentrate specifically on water resources management directly related to the oil and natural gas industry.
Focus on Water Needs for Oil and Gas Industry: The significant development presently ongoing in the unconventional resource plays located in the United States, and the ever-increasing needs for water to perform fracture stimulation activities, provides a significant market opportunity for the company.
Seasoned Management: GreenHunter Energy’s management is well-seasoned in the oil field with decades of experience and strong relationships in the exploration and production industry which the company plans to leverage to be a significant player within this growing business segment of water management services.
GreenHunter’s plan is to acquire and operate assets in the renewable energy sectors of biomass, geothermal, solar, wind, and water management. GreenHunter currently has ongoing business initiatives in biomass through Mesquite Lake, LLC.
Mesquite Lake Resource Recovery Plant
The Mesquite Lake Resource Recovery Plant (“Mesquite Lake”) is an active development project for GreenHunter, Inc. Mesquite Lake is an 18.5 MW waste-to-energy facility located in El Centro, California.
This Imperial County facility was originally built in 1989 at a cost of approximately $68 million to process cow manure into power and operated until December 1994, when its Power Purchase Agreement (“PPA”) was repurchased by Southern California Edison. Currently, Mesquite Lake is not generating electricity.
Mesquite Lake Fundamentals
- Asset acquired for $7.2 million.
- Plant refurbishment activities commenced during 2008.
- 20 year power purchase agreement executed in place with a major utility.
- Transmission interconnect agreement in place.
- Air permit in place.
When complete, the project is expected to burn more than 280,000 tons of waste woody biomass which will be converted into green electricity to serve residential users in California’s Imperial Valley through GreenHunter’s power purchase agreement with Imperial Irrigation District (IID).
Mesquite Lake is located in a region that the U.S. Bureau of Labor Statistics registers as having the highest unemployment rate in the United States of 27.3 percent, and the Imperial Valley Economic Development Corporation estimates that approximately 642 jobs will be directly or indirectly created as a result of the project development.
Solar Energy Potential at Mesquite Lake Facility
GreenHunter’s Mesquite Lake biomass facility is located on a 40-acre parcel of which 30 acres could be utilized for the biomass operation leaving 10 to 15 acres for the development of additional renewable energy projects. According to the National Renewable Energy Laboratory (NREL), average annual irradiance per square meter in the Imperial County is 6.23 kilowatt hours per day.
During the first quarter of 2010, GreenHunter formed a new subsidiary to explore the development of a solar energy farm on GreenHunter’s Mesquite Lake project site and completed a generator interconnection request with the Imperial Irrigation District (IID). On March 16, 2010 GreenHunter were notified that IID had preserved an interconnection queue position for GreenHunter’s solar project, subject to regulatory and permitting approvals.
GreenHunter believes there are unique economic and operational advantages to building a solar farm on this site most significant being the ability to share existing interconnection infrastructure with the biomass facility.
Strong Management History in Oil and Gas Industry
Management, which has a significant background in the oil and gas industry, has identified water reuse and water management opportunities in the energy industry as a significant growth opportunity and is exploring various ways to reposition the Company to serve this growing segment through joint ventures, targeted acquisitions, development and deployment of water resource management technologies, and services including underground injection for disposal, evaporation, pre-treatment of water for underground injection for increasing oil recovery, off site commercial disposal, on site remediation and beneficial reuse.
GreenHunter Energy, Inc.
Jonathan D. Hoopes President & COO
1048 Texan Trail Grapevine, TX 76051
Tel: (972) 410-1044
Any statements in this release regarding future expectations and prospects for GreenHunter Energy and its business and other statements containing the words “believes”, “anticipates”, “plans”, “expects”, “will” and similar expressions constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including the substantial capital expenditures required to fund its operations, the ability of the Company to implement its business plan, government regulation and competition. GreenHunter Energy undertakes no obligation to update these forward-looking statements in the future.
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