Monday, August 24, 2015

Biomass Secure Power Inc. (BMSPF) Expanding Presence in Thriving Bio-Coal Market through Recent Agreements

Biomass Secure Power Inc. (OTC PINK: BMSPF) is a development stage company focused on the production and supply of wood pellets for general use as a substitute for fossil fuels. Earlier this month, the company announced the execution of a letter of intent with River Basin Energy Inc. outlining the establishment of a joint venture for the development of a new bio-coal fuel production plant. When completed, the new plant, which will be majority-owned by Biomass, is expected to produce a minimum of 500,000 tons of bio-coal per year. Additionally, the company’s partner has agreed to purchase 100 percent of future plant production. Both partners are currently reviewing the proposed plant design and costing, and a report is due by the end of the month.

Last week, Biomass took another step toward expanding its market share through the announcement of its recently submitted offer to purchase an existing wood pellet plant in the northeastern United States. This offer, which is expected to close on or before November 30, could give Biomass an immediate foothold in the U.S. power production industry, as the entirety of the plant’s production is currently being sold directly into the local marketplace. The company plans to continue utilizing this acquisition-based strategy in order to expand its market share in the months to come.

The market for wood pellets has posted increasingly strong results in recent years, as many European nations are shifting power generation systems from coal to wood in an effort to be more environmentally-friendly. According to federal statistics, this demand led to an increase in U.S. bio-coal exports of approximately 100 percent between 2012 and 2013, rising from 1.6 million tons to 3.2 million tons. By 2020, analysts predict that these numbers could increase 10-fold in the face of tightened emissions goals recently implemented by the European Union. This rapid industry growth could provide Biomass with a platform for considerable financial returns as it continues to make progress toward expanding its market presence.

For prospective shareholders, the company’s recently announced joint venture with River Basin Energy, as well as its pending purchase offer, demonstrates its commitment to achieving sustainable growth in the future. Look for Biomass to continue promoting shareholder value while making strides toward increasing its foothold in the rapidly expanding wood pellet market moving forward.

For more information, visit www.biomasssecurepower.ca

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