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Economics delays W2 Energy projects indefinitely

By Erin Voegele
Web exclusive posted Nov. 7, 2008 at 11:24 a.m. CST

W2 Energy Inc., a U.S.-based green energy company that produces fuel from biomass and waste, recently announced that current economic conditions have financially hindered projects the company is involved with, and financing that was previously available has been delayed indefinitely.

The project updates were part of a status report issued Nov. 6.

Although W2 Energy's joint venture partners have been making great strides in developing their projects, no revenue has been produced to date. In May, W2 Energy announced it expected $5 million in revenue before the end of the year.

In June, W2 Energy announced it planned to form a biodiesel subsidiary. The company has been negotiating to secure a site for the plant, and is in negotiations with several equipment finance vendors to finance biodiesel equipment.

In July, W2 Energy announced Combustibles Alternativos Chile, known as Cobal Chile, had issued a purchase order for a waste-to-energy plant that will convert 80 tons of municipal waste into electricity and synthetic diesel. W2 Energy planned to build, install and commission the plant. The joint venture with Cobal Chile, as well as one with Better World Energy of Bangkok, Thailand, is moving forward, but the companies are waiting for financing.

The Nov. 6 statement issued by W2 also said the company plans to begin an engineering study that will provide conclusive third-party test data on the operation of a pilot unit. Coal, municipal solid waste, tires, plastics and agricultural waste will be processed in the unit; the output of electricity, liquid fuels, and hydrocarbon products will be recorded. Once the study is complete, the company plans to publicize the electricity and hydrocarbon output figures so that potential joint venture partners can use the information to find project development and financial partners.

At press time, W2 Energy had not returned Biomass Magazine's request for more information.
 

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