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Free Energy International Inc. signs agreement for the Swan Hills heat recovery project.
VANCOUVER, Aug. 31 /CNW/ - Free Energy International Inc. ("Free Energy" or the "Company") has be...
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[{"type":"text","content":"\n\n\n\nVANCOUVER, Aug. 31 /CNW/ - Free Energy International Inc. ("Free Energy"\nor the "Company") has been contracted by one of North America's largest\nindependent oil and gas exploration and production companies to install one or\nmore Organic Rankine Cycle power production plants at its Swan Hills oil and\ngas production facility in Alberta. These ORC plants will use geothermal waste\nheat from the facility to generate electricity to be used as an alternative or\nsupplementary source of electricity at the facility.\n\n\nThe main part of the Swan Hills field produces oil, gas and water from a\ndepth of approximately 9000 feet. These fluids are pumped to the surface at\napproximately 163 - 170 degrees F. in very high volumes. The oil and gas are\nseparated from the water, and the water is then pumped back into the\nformation. Free Energy will utilize heat exchange technology to remove\nsufficient heat from the water before it is re-circulated to produce\nelectricity.\n\n\nThe $7 million project is planned to be developed in 2 phases of 1 MGW\neach. Free Energy will be responsible for designing, financing, installing and\noperating the waste heat recovery system, and will own that system on\ncompletion. The Operator of the Swan Hills facility will be obligated to\npurchase from Free Energy all electricity produced by the facility and to pay\nFree Energy for all such electricity at the rate currently being paid by the\nOperator to its third party power supplier. The owners of the facility will be\nentitled to all carbon credits generated by the project and, after Free Energy\nhas received after-tax income equal to 115% of its out-of-pocket expenses,\nincluding capital costs, incurred to finance, construct, connect and\ncommission the facility, will receive a royalty equal to 50% of Free Energy's\nnet operating income. Completion of the first phase is scheduled for early\n2010.\n\n\nThe agreement is subject to Free Energy financing the project, consents\nfrom Government and approval from the owners of the Swan Hills Unit.\n\n\nWin for the environment:\n------------------------\n\nThis project is certainly a win for the environment as the energy produced\nis extracted from heated water that is recycled back into the earth and has\nbeen since 1956. There are no pollutants or green house gases produced and\nlitt...