WASHINGTON, Oct. 4, 2005 (PRIMEZONE) -- Future Fuels, Inc. (FFI), a wholly-owned subsidiary of Nuclear Solutions, Inc. (OTCBB:NSOL), announced today that it has signed a lease option and environmental permit agreement in another step toward constructing its first proposed waste-to-ethanol production facility in the northeast United States. According to the terms of the lease option/permit agreement, FFI has the exclusive option to enter into a fifteen-year lease, renewable in ten-year increments, for development of an approximate six-acre site for the facility's construction. It has until December 1, 2005 to exercise the option. FFI has the right of first refusal to purchase the site should the owner decide to sell.
Moreover, the agreement provides FFI with the right to use critical pre-approved state and local environmental permits to operate a proposed 52 million gallon waste-to-ethanol production facility. While standard building permits and technology still need to be secured, the agreement outlines an approach for FFI to use pre-existing permits and a readily available feedstock source to fuel a waste-to-ethanol conversion process and to sell the resulting ethanol, pending procedural, final consent from necessary regulatory agencies. It is believed that these environmental permits will save approximately 3 to 5 years in the permitting process, thereby expediting development of the proposed facility should FFI decide to exercise the lease option.
Additionally, the agreement offers a further advantage by including acquisition rights to an on-site source of feedstock suitable for conversion into ethanol at the proposed facility. Production costs at traditional ethanol production plants can vary due to fluctuations in the price of agriculturally derived feedstock, such as corn, resulting from changing weather conditions, seasonality and transportation logistics. The on-site, immediately available feedstock source for the proposed FFI waste-to-ethanol facility would all but eliminate such costs associated with feedstock acquisition and would make the plant's economic model practically immune to the uncertainties of weather, seasonality and transportation variables. Since feedstock is a major cost component in the overall process of producing ethanol at traditional facilities, FFI's approach would significantly minimize this cost center.
"The lease option/permit agreement-in which land, permits and suitable feedstock are secured-marks another positive development in Future Fuels' ongoing negotiations toward a waste-to-ethanol conversion facility.
"In order to exercise the option by the December 2005 deadline, our intent is to expeditiously and thoughtfully bring together the remaining components, like technology, critical to operate the facility. Our efforts will allow FFI to move forward with its business plan and to eventually capitalize on increasing demand for alternative fuels," summarizes FFI President Jack Young.
Recently, FFI signed a confidential, non-binding letter of intent with multiple business entities to acquire technology, land, permits, feedstock, and management expertise to facilitate the design, construction and operation of a waste-to-ethanol production facility. The lease option agreement announced today emerged from this framework.
Future Fuels, Inc., which will operate as an independent subsidiary of Nuclear Solutions, Inc., focuses on implementing technology to transform low-value waste streams such as trash, wood wastes, raw sewage, discarded corn stalks and other agricultural byproducts into high-value, clean-burning ethanol. Future Fuels, Inc.'s operations and financial results will be reported on a consolidated basis within Nuclear Solutions, Inc.'s public filings. Contact 202-536-4653 for more information about Future Fuels, Inc.
DISCLAIMER
The matters discussed in this press release are forward-looking statements that involve a number of risks and uncertainties such as our plans, objectives, expectations, and intentions. You can identify these forward-looking statements by our use of words such as "may," "when," "expect," "is believed" "we believe" "anticipate," "intend," "intended," "intends," "pursue," "could," "can," "estimate," "continue," "plans," "planning," "potentially," "would," "forward," "intent," "creates," "formative," "outlines," "usual," "announced," "ongoing," "should it decide," "still to be selected," "will have bypassed," "affords," "first step toward," "eventually," "is in the process," "bring together," "is waiting," "guarantee," "helps solve," "will serve," "in the process," "is expected," "will allow," "another step toward," "proposed," "should," "approximately," "intended," "certain pre-approved," "intent," "pending consent," "to be able," "emerged," "will operate" or other similar words or phrases. Some of these statements include discussions regarding our future business strategy and our ability to generate revenue, income and cash flow.
With regards to forward-looking statements on the technology, please note that such technology is still in its development stage and commercial validation has not been reached. While we believe that the appropriate technologies for waste-to-ethanol conversion are commercially available, we cannot guarantee that commercially available technologies will we suitable for producing ethanol in the proposed Future Fuels, Inc. facility.
With regards to forward-looking statements on the construction of such a facility, a facility like this has never operated before and there are inherent risks associated with the introduction of new technologies such as this. There could be unexpected problems or delays in the funding, construction and operation of the facility.
Overall, actual future results for Nuclear Solutions, Inc., and its wholly-owned subsidiary Future Fuels, Inc., could differ significantly from statements contained in the press release. Factors that could adversely affect actual results and performance include, among others, the companies' limited operating history, dependence on key management, financing requirements, technical difficulties commercializing any projects, government regulation, technological change, and competition. In any event, undue reliance should not be placed on any forward-looking statements, which apply only as of the date of this press release. Additionally, patent pending status or licensing does not guarantee that a patent will issue or that the technology will be commercially successful. Accordingly, reference should be made to Nuclear Solutions, Inc.'s periodic filings with the U.S. Securities and Exchange Commission, also available through the web site at www.nuclearsolutions.com.