VANCOUVER, March 17 /CNW/ - Free Energy International Inc. ("Free Energy" or the "Company") provides the following update on its activities, including the development of a municipal recycling and biomass waste facility in Prescott Valley, Arizona. On March 10, 2008 the Company announced it had entered into a Letter of Intent with EnEco Industries Ltd. ("EnEco") to develop a municipal recycling and biomass waste facility that would utilize Free Energy's proprietary thermal superconductor technology to generate electricity for the Arizona Power Grid ("Arizona Project"). The Company would like to outline project milestones achieved in completing a definitive agreement and project initiatives currently underway.
Milestones Achieved
- City of Prescott Valley has rezoned land intended for use having
completed the necessary public hearings and council approval.
- Arizona Corporation has passed legislation favourable for renewable
energy. This legislation will provide a further $0.06 per Kilowatt
hour for ten years up to 60% of the capital cost of the project
providing the project with an additional $15 to $18 million in
revenue.
- Under recent legislation Municipal Waste is considered biomass which
allows the project to apply for federal Power Transfer Credits (PTC)
of $0.01 per Killowatt hour.
- Estimated project Capital Cost is $22,000,000.
- A waste supply agreement has been negotiated in principle with a
major waste hauler.
Initiatives Under way
- Submission to Arizona Public Service for Power Purchase Agreement.
- Final Engineering is under way.
- The company is currently negotiating to arrange equity and debt
funding for the project.
Ground Heating Loops
Free Energy International has signed a contract with CIR Mechanical of Burnaby BC to install super conducting FE-SP30 thermal solar collectors to add heat to a geoexchange loop being installed in the clubhouse at a multi-family housing project located in Surrey BC. The new super conductor powered solar collectors offer a low cost alternative to using other, increasingly more expensive methods such as electric, propane or natural gas to serve as back up heat for the geothermal system. The solar panels will increase the average heating cycle ground loop temperature, thus raising the overall heating system operating efficiencies by 25 to 50%. The solar panel assistance also avoids the costs of adding extra boreholes to a geoexchange system traditionally used to increase capacity. The super conducting thermal solar panels being used to increase efficiencies of a geoexchange loop is a first for Free Energy International and will mark the first time the concept will be used in North America. Free Energy expects to gain considerable interest from the geoexchange industry from this innovative approach to solving the extensive problem of cold geoexchange loops.
Granting of Options
The Company has granted incentive stock options directors and officers of the Company to purchase up to an aggregate of 250,000 shares of the Company. The options are exercisable to purchase shares for $0.20 each for five years from the date of grant."
About Free Energy International Inc.(Formerly Fairfax Capital Inc.)
Free Energy International Inc. is a British Columbia corporation with its head office in Vancouver, British Columbia. The Company is listed on the TSX Venture Exchange as a Tier 2 company. The Company has a total of 12,836,453 common shares issued and outstanding, of which 7,056,000 shares are subject to escrow arrangements.
Additional information on Free Energy may be found on SEDAR at www.sedar.com.
Information on the technology can be viewed at the Free Energy website at www.freeenergysolutions.ca.
Alf Sanderson, President Free Energy International Inc.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. This release may contain forward-looking statements or statements relating to matters that involve a number of risks and uncertainties. Actual events or results could differ materially from the Company's expectations and projections.
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