Environmental Strategies and Technologies International Inc. (ESTI) announced that it has signed a letter of intent for a proposed joint venture with Alchemix H2 Technologies Corp. (Carefree, AZ) to build an electrical generating plant in Los Angeles fueled by landfill biomass. The plant will use Alchemix's HydroMax bioremediation technology, which converts biomass into low-cost hydrogen, syngas or electricity.
The site will be equipped with a state-of-the-art separator, which can remove metals and glass from the biomass, rendering it suitable as input for the HydroMax process. In addition, there will be a boiler on the site that will convert the hydrogen or syngas resulting from the process into electricity, which would go directly into the power grid.
The initial project is expected to generate revenues of approximately $4.0 to 5.0 million per year. It is anticipated that after completion and successful operation of the first plant, full-scale plants will be constructed, which will cost $273.0 million each, generating net revenues of $250.0 million each per year. The terms of the letter of agreement require that ESTI be responsible for 100 percent of the funding for the project, and to fund capital and operating costs for at least one, new, full-scale plant each year for a period of five years.
