NEWS - February 07, 2017
Biomass Secure Power Inc. Receives Increase in Bond Allocation
Abbotsford, British Columbia February 7, 2017. Biomass Secure Power Inc. (OTC: Pinksheets: BMSPF). Biomass Secure Power is pleased to advise shareholders that on January 31, 2017 Governor of Louisiana John Bel Edwards signed Executive Order Number JBE 17-03 (Carry-Forward Bond Allocation 2016).
Pursuant to and in accordance with the provisions of Section 146(f) of the Internal Revenue Code of 1986, as amended, and in accordance with the request for carry-forward filed by designated issuer, the excess private activity bond volume limit under the 2016 Ceiling is hereby allocated to the following issuer(s), for the following carry-forward project(s), and in the following amount(s):
ISSUER: Louisiana Public Facilities Authority.
Carry-Forward Project: Biomass Power Louisiana, LLC
Carry-Forward Amount: $88,536,200.
This increases the limit of Tax Exempt Bonds the company can sell to finance the Natchitoches Bio-Coal project by $28,535,200. The Company’s wholly owned subsidiary Biomass Power Louisiana L.L.C. (BPL). The Company has engaged the services of Bank of America Merrill Lynch to sell the bonds.
Upon funding, the proceeds will be used to build a 240,000 tonne bio-coal production plant at the Port of Natchitoches Louisiana. An off-take agreement is in place for 200,000 per year for twenty years which is projected to generate annual sales in excess of $40 million per year. The total annual income for phase one of the bio-coal plant is projected at $48 million.
This is phase one of three planned phases that will increase the plant production to one million tonne per year. Bio-coal is a torrefied product used to generate both heat and power for residential and industrial purposes. Bio-coal can be used as an alternate fuel to coal in most circumstances. The advantage over white pellets is that little if any CAPEX is required to convert power plants from coal to bio-coal, whereas white pellets require a significant investment to convert.
About the Company
Biomass Secure Power Inc. is incorporated in the Province of British Columbia. On May 4, 2016 the Company signed a Memorandum of Understanding with River Basin Energy to merge the companies and build a bio-coal plant at the Port of Natchitoches, Louisiana. Public filings and financial information for Biomass Secure Power Inc. can be found at www.sedar.com.
Safe Harbour Statement:
This information includes certain “forward-looking statements”. The forward-looking statements reflect the beliefs, expectations, objectives and goals of the Company management with respect to future events and financial performance. They are based on assumptions and estimates, which are believed reasonable at the time such statements are made. However, actual results could differ materially from anticipated results.
On Behalf of the Board,
BIOMASS SECURE POWER INC.
Jim Carroll, President – CEO