WASHINGTON, Feb. 27, 2006 (PRIMEZONE) -- Future Fuels, Inc. (FFI), a subsidiary of Nuclear Solutions, Inc. (OTCBB:NSOL), announced today an expansion of its contract with Eco-Energy, Inc. of Tennessee. FFI and Eco-Energy, Inc. entered into a 10-year agreement during which Eco-Energy, Inc. will purchase approximately 50 million gallons of ethanol annually from FFI's proposed waste-to-ethanol production facility to be constructed in Toms River, New Jersey. Eco-Energy secures the ethanol FOB (free on board) from the proposed facility, thus eliminating any logistical or transportation costs for FFI. It was previously reported on December 15, 2005 that the contract between FFI and Eco-Energy, Inc. would span only five years and would be renewable for up to ten years. This contract revision now specifies a full 10-year commitment, with the other terms of the agreement remaining the same.
"We welcome this change in our contract with Eco-Energy as it signals a deepening partnership between our companies in moving ethanol FOB from the proposed FFI facility to the marketplace. Eco-Energy is Future Fuels' first customer for nearly all of our future, annual ethanol production from the Toms River facility. Signing such a major customer early-on helps strengthen FFI's ability to secure financing and is a potentially favorable factor in the bond underwriting process. The fact that Eco-Energy is willing to commit to us for the longer-term is a significant testament to their belief in the soundness of our business model," explains FFI President Jack Young.
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.
Nuclear Solutions President and CEO, Patrick Herda, adds, "We remain excited by the tremendous progress FFI continues to make toward launching its first waste-to-ethanol production facility. Congratulations to Jack Young and his team for their steadfast efforts in reaching yet another milestone. In addition to signing Eco-Energy as its first customer for an even longer time period, FFI has successfully secured land, environmental permits, a waste source suitable for conversion into ethanol, and preliminary approval for an $84 million bond authorization from the state of New Jersey for a 52 million gallon waste-to-ethanol production facility in Toms River.
"In recognizing FFI's progress to date, we look forward to the unveiling of FFI's technological underpinnings and business model. Such information is being protected at this time for strategic and competitive reasons. FFI's technology approach is to integrate commercially available and proven subsystems into a seamless process for the production of ethanol from a wide range of waste feedstocks. This technical approach coupled with its innovative business model will give FFI the lead in waste-to-ethanol conversion. Indeed, we believe that FFI is poised to become a leader in the industry with its novel approach to technology integration and could be a significant and driving force in the production of environmentally-friendly synthetic fuels and fuel additives."
FFI employs a unique business model -- very different from Nuclear Solutions, Inc.'s core business areas and competences -- that implements commercially available and proven 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 by-products, into high-value, environmentally-friendly, clean-burning ethanol. FFI's waste-to-ethanol production facility at Toms River will become the basis for launching additional facilities at other potential sites across the country. Currently, FFI reports its operations and financial results on a consolidated basis within Nuclear Solutions, Inc.'s public filings. For more information on FFI, call 202-536-4653.
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 "agreed to enter," "to be constructed," "proposed," "would span," "would be renewable," "in moving," "is willing," "potentially," "in launching," "near finalization for release," "is poised to become," "look forward," "will be released," "is being," "what will shortly become evident," "will be forthcoming," "forthcoming," "could be," "will become the basis for launching," "intends," "will give," "will accommodate," "will result," "we believe," "being pursued," 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. 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.