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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