Vancouver, British Columbia--(Newsfile Corp. - November 28, 2018) - Today's feature company is Green 2 Blue Energy Corp. (CSE: GTBE) (OTC Pink: GTGEF) (FSE: 1NZ), a renewable energy company focused on residential and commercial wood pellet production and the implementation of biomass gasification technology to generate combined heat and power. With operations in Poland, the company sells wood pellets to retail outlets and power producers throughout Europe, including the United Kingdom, Germany, Poland, Italy and Denmark.
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At the beginning of November, the company signed a lease agreement with a court receiver to operate a new pellet production facility is the township of Szczypkowice. The facility is approximately 83 kilometers west of Gdansk and 130 kilometers north of the company's current pellet operations in Rzeczenica. All existing equipment including pellet machines, a drum dryer, hammer mill and full production line are included in the agreement, along with an existing license allow for up to 3,000 tonnes per month.
The facility originally opened on December 2, 2013 with CAPEX of approximately CDN$11 million spent on a new building and equipment for the purpose of manufacturing biomass pellets from straw. The company is currently negotiating favorable contracts with buyers looking to purchase straw pellets. The existing facility, machines and equipment are easily adaptable if necessary to manufacture wood pellets by changing the pellet machine dies to accommodate residual wood sawdust as feedstock instead of straw.
Slawek Smulewicz, CEO, stated, "We see this as an immediate opportunity to further increase our pellet product offering and production capacity for minimal start up costs. The new facility is strategically located with numerous feedstock suppliers nearby."
In June, the company exercised its option to purchase its leased premises and buildings in Rzeczenica for approximately CDN$670,000 plus the value added tax of 23%. This purchase includes 17 acres of land, all existing buildings, recent upgrades completed by the company and existing infrastructure, currently valued at approximately CDN$2 million. The company is purchasing a fully automated bagging system capable of packaging up to 6.3 tonnes of pellets per hour or approximately 3,000 tonnes per month, essentially replacing 8 employees, thereby reducing operating costs. With new equipment installed and tested, the company expects to be fully operating in December, increasing overall production to 3,000 tonnes of pellets per month.
The company's planned business objectives for 2019 are to establish and increase production in both facilities and integrate a biomass gasification co-generation plant at the facility in Rzeczenica to further reduce operating costs and increase profitability margins. The company expects to achieve at least 80% of its 3,000 tonnes of production capacity per month in its Rzeczenica facility by end of March 2019 and 80% of its production capacity at both facilities by end of June 2019, for a combined total of 4,800 tonnes of pellet production per month at fiscal year end.
The company currently sells its pellets for an average price of CDN$234 per tonne. Generally, these pellets will be burned as fuel for large scale municipal boilers and energy producers across Europe and the United Kingdom, thereby replacing coal and similar fossil fuels as a primary generator of electricity.
Slawek Smulewicz, CEO, stated: "Our number one priority remains the same, which is to steadily increase pellet production, sales and profitability to ultimately create long term shareholder value. We now have a steady supply of feedstock and with the previously announced addition of our newly leased Facility in Szczypkowice, and the recent upgrades and equipment installations at our current Facility in Rzeczenica, the Company is well positioned to execute on our growth objectives."
For more information, please visit the company's website www.G2BEnergy.com, or contact Glenn Little, Director of Corporate Communications, at 604-539-5023.
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