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Global Environmental Energy Corp. Subsidiary, Biosphere Development Corp., Signs Agreement of Intent with Shenzhen Branch of Yankuang Group Co., Ltd., and the Shenzhen Rayes Group Co. Ltd. Thursday January 27, 10:57 am ET Three New Joint Venture Companies Are to Be Formed in China in a Four Stage Process That Will Deploy Over 1,300 Biosphere(TM) Process Systems in China by 2010
NASSAU, Bahamas--(BUSINESS WIRE)--Jan. 27, 2005-- Global Environmental Energy Corp. (OTCBB:GEEC - News; FWB:LFT) today announced that it has filed an 8K with the Securities and Exchange Commission on January 26th, 2005, confirming that Biosphere Development Corp. has signed and exchanged an Agreement of Intent with the Shenzhen Branch of Yankuang Group Co., Ltd., and the Shenzhen Rayes Group Co. Ltd., to provide for the formation of three new joint venture companies in China. On January 21st, Biosphere Development Corp. signed and exchanged an Agreement of Intent with the Shenzhen Branch of Yankuang Group Co., Ltd., and the Shenzhen Rayes Group Co. Ltd., to provide for the formation of three new joint venture companies in China.
The Shenzhen Branch of Yankuang Group Co., Ltd., and the Shenzhen Rayes Group Co. Ltd., are forming one company to represent Biosphere Development Corp.'s Biosphere(TM) Process Systems in China. The Shenzhen Branch of Yankuang Group Co., Ltd., the Shenzhen Rayes Group Co. Ltd., and Biosphere Development Corp. are jointly forming two new joint venture companies in China. The first new joint venture company will be an operating company, responsible for plant management, marketing and development. The second new joint venture company will be an investment company, responsible for financing and investment and for managing the partner's relationship with the government of China. These developments are planned to take place in four stages.
1. In the first stage of this development before August 2005, the new joint venture company between Shenzhen Branch of Yankuang Group Co., Ltd., the Shenzhen Rayes Group Co. Ltd., and Biosphere Development Corp. will establish a manufacturing and assembly facility for Biosphere(TM) Process Systems in China. The initial concentration for deployment of Biosphere(TM) Process Systems has been agreed to be the major cities of Shenzhen, Yantai and Guilin.
2. In the second stage of this development, that is on or before February 2006, the new joint venture company between Shenzhen Branch of Yankuang Group Co., Ltd., the Shenzhen Rayes Group Co. Ltd., and Biosphere Development Corp. expects to deploy 20 to 30 Biosphere(TM) Process Systems in China. These deployments will see the Biosphere(TM) Process Systems being used to convert used car tires, waste oiled water, coal and biomass into electricity and steam.
3. In the third stage of this development, timetabled to take place between 2005 and 2008, the new joint venture company between Shenzhen Branch of Yankuang Group Co., Ltd., the Shenzhen Rayes Group Co. Ltd., and Biosphere Development Corp. will expand the initial deployments with the addition of another 300 Biosphere(TM) Process Systems.
4. In the fourth stage of this development, timetabled to take place between 2008 and 2010, the new joint venture company between Shenzhen Branch of Yankuang Group Co., Ltd., the Shenzhen Rayes Group Co. Ltd., and Biosphere Development Corp. will expand the deployments with the addition of another 1,000 Biosphere(TM) Process Systems.
Announcing this contract, Dr. Albert Reynolds, former Prime Minister of Ireland (1992-1994), Chairman of Global Environmental Energy Corp., said, "I am extremely pleased to form these new exciting joint venture companies with our new partners in the Yankuang Group Co., Ltd., and the Shenzhen Rayes Group Co. Ltd. China, with an estimated population of 1,298,847,624 (July 2004 est. www.cia.gov), represents an enormous marketplace for the Biosphere(TM) Process System. In 2001, the Chinese Central Government set a target of quadrupling the national economy to USD$6.8 trillion per annum by 2020 (www.freerepublic.com). To meet this expansion, China needs 800 million to 900 million kilowatts of electricity a year, but for now it can only generate 350 million kilowatts of electricity annually. That means a shortfall of 450 million to 550 million kilowatts; providing a huge opportunity for the Biosphere(TM) Process System.
"I am honored and privileged to form these new exciting joint venture companies with our new partners in the Yankuang Group Co., Ltd., and the Shenzhen Rayes Group Co. Ltd. I understand from our partners that China's central government is currently in the process of formulating a national Renewable Energy Promotion Law, which will have a significant impact on the development of the Renewable Energy industry in China. Specifically it is planned that China will achieve a target of 10% of electric power generation from renewable energy between 2010 and 2012. In addition Local governments, such as Beijing, Shenzhen, Tianjin, have enacted local policies to encourage Municipal Solid Waste gasification projects, like the Biosphere(TM) Process System. As a case in point, Beijing will invest RMB 54 Billion to develop and encourage Municipal Solid Waste gasification projects with the cities paying subsidies to companies involved in Municipal Solid Waste gasification. These subsidies are set for FY 2005 at RMB 250 per tonne of Municipal Solid Waste. A further example of the gravitas with which these projects are being undertaken is provided by the city of Shenzhen in Guangdong province, which plans to build 7 new Municipal Solid Waste gasification facilities this year (2005) whilst closing existing Municipal Solid Waste landfills. Shenzhen's goal for 2005 is to divert 9,100 tons of Municipal Solid Waste per day away from landfills and into gasification.
"Our partners' planned deployment of over 1,300 Biosphere(TM) Process Systems represents a potential income from sales to Biosphere Development Corp. in excess of USD$9.75 billion by 2010. I look forward to working closely with Mr. Changyou Wang of the Shenzhen Branch of Yankuang Group Co., Ltd., and Mr. Ximei Huang, Chairman of the Board of the Shenzhen Rayes Group Co. Ltd., to help China meet its energy needs."
This large venture has been instituted to fulfill an urgent need for waste disposal and energy generation in China. During the last two decades, the economy of China has been growing at an annual rate of almost 10%. The total amount of waste generated has been growing at a similar pace of 8-10% annually. Currently, every Chinese person produces every year on average 440 kg of solid waste. Using this waste as a fuel source can do much to alleviate China's growing energy needs, while reducing their reliance on fuel electric and fuel imports. According to a report from the China Power Enterprise Association, periodic blackouts are set to continue in the coming months in south China's Guangdong Province, east China's Anhui, Jiangsu and Zhejiang provinces and Shanghai, southwest China's Sichuan Province and Chongqing Municipality and Northwest China's Gansu, Qinghai and Shaanxi provinces and the Ninxia Hui Autonomous Region, and north China's Hebei and Shanxi provinces. Eastern China has shortages of 10 to 15 million kilowatts, southern China is short 5 million kilowatts, northern China is short 3 million kilowatts, and central China is short 3 million kilowatts. These shortages affect present industries as well as new industrial opportunities.
About the Shenzhen Rayes Group Co. Ltd.
The Shenzhen Rayes Group Co. Ltd., also known as China Online, is registered in Shenzhen and its main business is in developing network infrastructure and services via China Online (COL). Since 1994, COL has deployed a large-scale ISP network with national coverage of 105 major cities in China. COL was approved by MII (Ministry of Information Industry, formerly Ministry of Post and Telecommunications) in 1997 as a national ISP and related services provider. COL and China Telecom's 169 national ISP networks have a strategic alliance since 1998. Shenzhen Rayes Group's registration capital is RMB 0.19 billion with total asset of RMB 2 billion. Its business ranges from investment, real-estate development, ISP, to international business. From 1996 to 1998, China Online was China's largest systems integration and network solutions provider and was an industry leader in providing business-to-business Internet and software applications, infrastructure applications, network, and integration applications solutions for Chinese companies, with emphasis in servicing the manufacturing sector of Southern China. China Online has operations in 105 large and medium-sized cities throughout China with over 2,000 professionals on staff at its peak period. Key partners and customers of the Rayes Group include Microsoft and Compaq of the U.S., the Beijing Telecom Bureau, and the China Industrial Economy Association.
About the Yankuang Group Co., Ltd.
Yankuang Group Co., Ltd., has assets of RMB 22.844 billion and more than 50 subsidiaries. The Yankuang Group is engaged in coal production and sales, coal chemical, civil engineering, etc. with annual total sales income of RMB 11.258 billion. The Yankuang Group Co., Ltd.'s subsidiary Yangzhou Coal Mining Company Limited, has been successfully listed on the New York Stock exchange, Hong Kong Stock Exchange and Shanghai Securities Exchange, respectively, in 1998 (Hongkong, Shanghai and New York Stock Exchange (ADS:YZC)).
About Biosphere Development Corp.
Biosphere Development Corp. is a subsidiary of Global Environmental Energy Corp. Global Environmental Energy Corp. intends to become a fully integrated energy company whose interests will include traditional oil and gas and alternative energy sources, environmental infrastructure and electrical micro-power generation. Biosphere Development Corp.'s unique proprietary technology, EcoTechnology(TM), supplies energy through an efficient and environmentally safe process. The Biosphere Process(TM) System, a central part of the EcoTechnology(TM) system, can safely and efficiently processes traditional and non-traditional waste materials into electricity and other beneficial by-products. The Biosphere Process(TM) can assist in solving the global waste problem by converting into clean, green electricity such waste materials as: municipal solid waste (MSW), agricultural surpluses, agricultural effluents, forestry wastes, sewage sludge, medical waste, industrial wastes, flared natural gas, shale oil, sour natural gas, high sulfur oils, waste bilge oil, waste drilling muds and fluids, and many other traditional and non-traditional waste materials.
It is the intention of Global Environmental Energy Corp. that Biosphere Development Corp. will become a fully reporting and trading company in the future if accepted by the SEC and the NASD for trading. Global Environmental Energy Corp. maintains a web site at http://www.globalenvironmentalenergy.com/index.htm.
Note to Investors
This press release contains forward-looking information within the meaning of Section 27A of the Securities Act of the 1933 and Section 21E of the Securities Exchange Act of 1934, and is subject to the safe harbor created by those sections. The forward-looking information is based upon current information and expectations regarding Global Environmental Energy Corp. These estimates and statements speak only as of the date on which they are made, are not guarantees of future performance, and involve certain risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results could materially differ from what is expressed, implied, or forecasted in such forward-looking statements. Global Environmental Energy Corp. assumes no obligation to update the information contained in this press release. Global Environmental Energy Corp.'s future results may be impacted by risks associated with rapid technological change, new technological developments and implementations, execution issues associated with new technology, manufacturing production to meet demand, litigation, media publicity and the negative impact this could have on sales, competition, financial and budgetary constraints of prospects and customers, international order delays, dependence upon limited source suppliers, fluctuations in component pricing, government regulations, dependence upon key employees, and its ability to retain employees. GEEC's future results may also be impacted by other risk factors listed from time to time in its SEC filings, including, but not limited to, the Company's Form 10-QSBs and its Annual Report on Form 10-KSB.
-------------------------------------------------------------------------------- Contact: Global Environmental Energy Corp. Dr. C. A. McCormack, 877-723-6315 www.globalenvironmnetnalenergy.com
-------------------------------------------------------------------------------- Source: Global Environmental Energy Corp.
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