Message #12 From:
NewsBot Date: October 19, 2005 07:11:00 AM
DIGG News Digital Gas Farming Center to be Lead Development of $425 Million East St. Louis Waste-to-Energy Project
NEW YORK--(BUSINESS WIRE)--Oct. 19, 2005--Digital Gas, Inc. (OTC Pink Sheets:DIGG) announced today that its subsidiary, Digital Energy & Farming (DEF) signed a new agreement with Entropic Energy LLC that enables it to be the lead in the $425 million waste-to-energy complex to be located in East St. Louis, Illinois. The agreement also increases Digital's stake in the farming center from 50% to 80% and allows Digital to earn up to 30% of the equity in the other projects in the complex.
According to Mr. Austin Marshall, CEO of Entropic Energy, "the farming center is the high profit part of the complex and can come on stream twelve to fifteen months prior to the fuel and power plants. The facility will produce a wide variety of foods, pharmaceuticals, strategic substances and ready-to-market products. It is the centerpiece of the complex." DEF has been advised by Entropic that anywhere between $20-40 million in TIF funding will be approved for startup.
The proposed $425 million center is within East St. Louis, a suburb of St. Louis in need of investment. Mr. Marshall commended the Mayor's office and the City Council for their support and cooperation. The proposed development is anticipated to significantly increase the city's housing stock for low and moderate income families, the city's assessed valuation and allow the city to dispose of wastewater treatment plant sludge. Being a "TIF District," East St. Louis receives all of the taxes on the increased value of developments within the district. The increased revenues can only be used for developments within the district.
Entropic's patented technology produces a clean-burning, high energy fuel derived from the widest variety of processed waste. The product has the same BTU value as high-grade coal without emitting the impurities (e.g. sulfur, mercury, etc) associated with coal. Furthermore, the product is fifty to eighty percent more combustion efficient than refuse-derived fuel (RDF). This technology is a much needed alternative and/or supplement to coal-fired power plants and an immediate solution for solid waste disposal problems plaguing major urban areas.
Digital Gas has committed to Entropic Energy that it will reinvest 10% of its net income to further health, education and welfare projects within East St. Louis. Any municipality or corporation that would like to partner on future projects should contact energy&farmingcenters@digitalgas.com.
In a related development, DEF has successfully negotiated an option to purchase a 200 acre property containing a minimum proven 4 million tons of gravel in Ontario, Canada in a high development area within forty-five miles of Toronto. DEF intends to sell the gravel over a period of five to ten years and use the proceeds to support a debt financing for a farming center to be located on the same property.
