WASHINGTON, Dec. 15, 2005 (PRIMEZONE) -- Future Fuels, Inc. (FFI), a subsidiary of Nuclear Solutions, Inc. (OTCBB:NSOL), announced today that it has contracted to sell 50 million gallons of ethanol per year to Eco-Energy, Inc. of Tennessee. The price Eco-Energy will pay FFI for the ethanol will be based on prevailing market rates for the duration of the agreement. The five-year agreement, the terms of which are disclosed in an 8-K Informational Filing with the U.S. Securities and Exchange Commission, is renewable for up to ten years.
Under the terms of the agreement, Eco-Energy would purchase approximately all of the annual production of FFI's waste-to-ethanol facility once operational in Toms River, New Jersey. Securing such an agreement with Eco-Energy coincides with the preliminary approval for $84 million in tax-exempt bond financing from the state of New Jersey for the facility, thus creating a favorable business climate and assisting with the bond rating, underwriting process.
In addition to receiving bonding approval and signing-on its first customer, FFI concluded a lease agreement for its Toms River site, which includes access to pre-approved state and local environmental permits as well as an on-site, immediately available source of feedstock suitable for conversion into ethanol that significantly minimizes or altogether eliminates feedstock cost. Currently, FFI is in preliminary discussions for further strategic locations in the Northeast, Midwest and West Coast with similar transportation and logistical advantages as provided by the Toms River location.
"Eco-Energy is committed to being a viable, long-term, consistent supplier of ethanol to the refining community. The Toms River site will provide for a logical shipping point to the growing East Coast ethanol market. The Future Fuels site is well positioned to take advantage of the continuing elimination of MTBE blended gasoline and conversions to ethanol blended fuels. We look forward to working with Future Fuels at its Toms River site as well as other developing sites," states Eco-Energy, Inc. President Larry Beckwith.
Eco-Energy, Inc. is one of the principal marketing companies in the ethanol industry, with ethanol being among the first commodities traded by the industry leader and the largest share of its business to date. To learn more, visit www.eco-energyinc.com.
"Signing Eco-Energy as Future Fuels' first customer for nearly all of our future ethanol production from Toms River strengthens our ability to secure financing. Since establishing FFI in August of this year, we have been successful in securing land, permits, feedstock, bond authorization -- and now our first customer -- for the proposed waste-to-ethanol production facility. With such major components in place, we recognize and appreciate Eco-Energy's confidence in us and look forward to working with them for the purchase of our ethanol," explains FFI President Jack Young.
Future Fuels, Inc., a subsidiary of Nuclear Solutions, Inc., focuses on implementing technology to transform low-value, end-of-life carbonaceous waste materials such as waste coal, used tires, wood wastes, raw sewage, discarded corn stalks, and other agricultural byproducts into high-value, environmentally-friendly, clean-burning ethanol. Future Fuels, Inc. will operate as an independent subsidiary with a separate board of directors, management team and operations personnel. Nuclear Solutions, Inc. will retain an oversight role and report Future Fuels, Inc.'s operations and financial results on a consolidated basis within its 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 "to sell," "are disclosed," "would purchase" "once operational," "securing," "thus creating," "will assist," "will be based," "preliminary discussions," "further," "will provide," "look forward," "focuses," "will be reported," 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 proposed waste-to-ethanol facility, a facility like this has never before been constructed or operated and there are inherent risks associated with the establishment of such new operations. There could be unexpected problems or delays in the funding, construction and operation of the facility. There is no guarantee that we will be successful in raising the capital required for this project through the issuance of tax-free bonds discussed herein. 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.
Overall, actual future results for Nuclear Solutions, Inc., and its 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. The five-year historical composite price of ethanol is $1.40 per gallon. There is no guarantee that the future market price of ethanol will remain at, above or below the historical composite price of due to market forces beyond our control.
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.