Green Energy Resources ( Pinksheets GRGR ) A new US Federally funded program for biomass suppliers will redirect the focus of Green Energy Resources from export markets to domestic supply. The newly funded Biomass Crop Assistance Program (BCAP ) became available this August and makes matching payments directly to suppliers. Each domestic delivery to a power plant will receive a matching payment from the US Government. The plan puts wood chips on a par with gas, coal, and oil as a bonafide energy commodity transportable around the country. Green Energy Resources looks to expand and accelerate domestic supply contracts to take advantage of the new program.
In other news , Green Energy Resources received an offer from Dolberry Energy to merge the two company's. The Dallas,Texas Energy company made the announcement in late July. Green Energy has agreed to consider the potential assets that Dolberry Energy has to offer. To date, Green Energy Resources has not received a formal offer or term sheet from Dolberry Energy and discussions are ongoing.
Green Energy Resources in a reversal has declined the $8 million dollar standby letter of Credit offer announced in July. The Federal Bcap program will allow greater access to new cash revenues without high interest rates, stock options or the LC purchase cost of $1.4 million. Green Energy Resources instead plans to collateralize a half million tons of wood chips to generate nearly $15 million dollars in revenues through the new Federal BCAP opportunity.
India has joined the global community to reduce green house gases by expanding its renewable energy program. It plans to purchase over 36 million tons of woodchips annually for bioenergy production commencing immediately . Green Energy Resources has been invited to supply upwards of three million tons on an annual basis but has not yet committed due to the challenging freight costs from North America.
Except for historical information contained herein, the statements in this release are forward-looking statements that are made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties that may cause the companies' actual results in future periods to differ materially from forecasted results. Such risks and uncertainties include, but are not limited to, market conditions, competitive factors, the ability to successfully complete additional financings,ship availability, fuel costs and other risks.
Green Energy Resources inc
Contact 631-375-7921
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