Alternate Energy Corp. Announces Upgraded Business Model 1/18/06 BURLINGTON, Ontario, Jan 18, 2006 (BUSINESS WIRE) --
Opens Up a Billion Dollar Worldwide Market of Opportunity
Alternate Energy Corporation (AEC) (OTCBB:ARGY) on November 14, 2005 announced that it had filed a provisional patent on a new production process by which it can economically produce pure hydrogen and commercially saleable commodity chemical products that open up a billion dollar worldwide market to the Company. These developments have resulted in AEC re-defining its business model, while positioning the Company to become a player in the production of pure hydrogen for a wide spectrum of commercial applications.
Over the past year, AEC has worked closely with a nationally recognized, independent chemical laboratory in Toronto, Ontario, Canada, to further refine its process. The revised formulation has improved hydrogen production significantly, with the added creation of valuable commodity chemicals. Since the commodity chemicals have a much higher market value/weight than the hydrogen itself, subsidization of the hydrogen's selling price via the sale of these chemicals can easily bring it more into line to compete directly with current gasoline prices. Long awaited by the automotive industry, AEC's solution could be society's closest answer to the hydrogen economy becoming a reality and make driving a hydrogen fueled automobile affordable. For example, AEC's solution could be an ideal candidate for the "Hydrogen Highway" in California, due to the overall low cost required to produce the required hydrogen fuel for future hydrogen powered cars - on the spot.
Prior to these recent developments, AEC had been focused on small, portable, on-demand hydrogen production systems which it continues to refine. These recent improvements to its process have resulted in the production of commercially saleable commodity chemical products. This has opened a large door for AEC - bulk hydrogen production at stationary customer sites, with the simultaneous production of chemical commodity products, recovered as a routine part of the production process.
Mr. Blaine Froats, Chairman & CEO of AEC, stated, "As reported earlier, we have recently filed a provisional patent with the U.S. Patent Office relating to significant improvements to our hydrogen production process that resulting in, not only increased hydrogen production capabilities and a more efficient production process, but also the ability to produce a number of broadly used chemical commodity products which have demand in existing multi-million dollar global markets."
Mr. Froats commented further, "These discoveries and developments have substantially impacted our business model, and have afforded us the ability to offset the cost of producing hydrogen to such an extent that we believe our prices can be very competitive in the bulk hydrogen market, while also moving into the commodity chemicals marketplace with certain products that are valued at market prices greatly exceeding the value of the hydrogen being produced."
AEC's research indicates that the market for bulk hydrogen gas is enormous, currently estimated at approximately US$3 billion globally. In an attempt to clarify for the shareholders what the impact of the Company's new business model might have going forward, the following example should be helpful. By locating just one stationary hydrogen production unit at the site of a food oil manufacturing facility, AEC could supply on-demand, high-quality hydrogen to the plant to satisfy the needs of their hydrogenation process and fuel for in-plant power generation, while also producing its commodity chemical products from the same facility. The Company would expect such an installed system to typically result in gross revenues to the Company of about $80 million, with gross profits exceeding $30 million at current market prices for the produced hydrogen and commodity chemicals.
AEC's commodity chemical "by-products" clearly meet industry standards after having been thoroughly analyzed by an independent laboratory for quality and purity. Mr. Froats went on to say "These recent developments at AEC have clearly changed our outlook for the future of our company. While we initially were solely in the "hydrogen" business, the financial opportunity, as presented to us by these developments, has clearly opened up the commodity chemicals business to the Company. It is also interesting to note that these developments have caught the eye of a number of world class players in the hydrogen and chemicals businesses and could lead to AEC forming a number of large scale joint ventures in the near future."
Alternate Energy Corporation (AEC) is energizing the hydrogen economy with its on-demand Hydrogen production technology that provides small-scale electricity, and bulk production of hydrogen and a saleable by-product. These systems have global opportunities in multiple market segments. AEC's proprietary discovery in metallurgy and process technology permits the generation of hydrogen from water through a "green" process at a competitive level to the fossil fuel kWh cost of energy. AEC believes its systems can have a revolutionary impact on the energy industry.
Forward Looking Statements:
Statements herein express management's beliefs and expectations regarding future performance and are forward-looking and involve risks and uncertainties, including, but not limited to, the ability to negotiate outstanding prior debts of acquired companies; properly identify acquisition partners; adequately perform due diligence; manage and integrate acquired businesses; react to quarterly fluctuations in results; raise working capital and secure other financing; respond to competition and rapidly changing technology; deal with market and stock price fluctuations; and other risks. These risks are and will be detailed, from time to time, in ARGY's Securities and Exchange Commission filings, including Form 10-KSB 10-QSB and 8-K. Actual results may differ materially from management's expectations.
Alternate Energy Corporation (OTC Bulletin Board:ARGY)
posted
A couple yrs back or so this stock went on a 2 or 3 day run up to about $2.65, did'nt stay there long though
Posts: 62 | Registered: Jul 2004
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First of all I am not bashing. I just have one question. What is the differance between todays PR and the PR released on Nov.14th. I was in and out on this today, made good money. Hope to get back in but I can not understand why this moved 200% today when the exact same news only gave it a 50% push in Nov.
Posts: 282 | From: Atlanta Ga. | Registered: Apr 2005
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posted
Goodones, check the SEC filings to see the SB2 that was accepted the same day as the PR rehash. The company had been just about to run out of cash, and the company had been unable to complete a registration needed for a PIPE they entered last year. The real news is that they now have cash to last for months, maybe to the end of the year.
Have fun getting in and out. Just make sure you are well out by April 12, when their patent application will publish. At that point the "I've got a secret" game will be over.
Posts: 1 | Registered: Feb 2006
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