News Release
Oct 26, 2011
San Diego, CA - Oct 26, 2011 - Global Green Solutions Inc. (the "Company")
Through its subsidiary, Global Greensteam LLC, the Company began development of the patent-pending, Greensteam process in 2007, completing construction of a demonstration plant near Bakersfield, California in 2010. Greensteam is a proprietary, highly efficient, advanced combustion process designed to produce renewable energy from biomass with minimal air pollution and is the sole business of the Company. The demonstration plant is located in Aera Energy LLC's Belridge oilfield, near Bakersfield, California. Aera Energy is one of California's largest oil and gas producers.
In December, 2010, the demonstration plant successfully achieved full steam generation capacity of approximately 5.8 MW (thermal), operating exclusively on woody agricultural biomass fuel with the steam supplied to Aera Energy LLC for its enhanced oil recovery operations.
In January, 2011, the Company targeted raising $1.5 million to fund operations through to completion of the Aera Energy LLC-specified performance test. From December, 2010 to August, 2011 the Company was able to raise approximately $786,000. In order to try to complete the test, the Company entered into an agreement to sell the demonstration plant facility whereby it received $400,000 and has an option to re-purchase the facility at any time prior to December 31, 2011. The Company retained the exclusive use of the facility until June 30, 2012 if required, for ongoing testing and development of its Greensteam process and technology. In support of the Company and the project, executive management worked for most of the past year without any compensation.
Testing and modifications continued in 2011 and at the end of August, 2011, the demonstration plant was successfully operating on biomass fuel and had met all performance targets with the exception of emissions. Up to the end of August, the Company believed that the start of the Aera Energy LLC-specified 30 day performance test was imminent and would trigger new funding. While emissions optimization was clearly progressing, the emissions performance targets that needed to be met prior to starting the test had not yet been achieved. Significant funding that had been expected, based on the start of the test was not received and demonstration plant operations had to be suspended.
The Company commenced an evaluation of each aspect of the project including technical plan, staffing, overhead and funding approach. Its objective was to re-start operations as soon as that evaluation was completed, the results of the evaluation had been implemented, and new funding had been put in place. The evaluation, although not fully completed, identified a modified burner design necessary to meet emissions targets. At the same time, the Company attempted to raise new funding to complete emissions optimization, start the 30 day test, and continue project development.
Facing challenging economic and market conditions and not being able to commence the 30-day test, the Company has not been successful in raising additional funding necessary to support ongoing operations. Although the Company retains intellectual property and a trademark, it has no hard assets that it could sell, has no cash, and is not able to meet its financial obligations. The company will only be able to continue operations with an immediate infusion of new funding which it is seeking to raise.
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