Headwaters Incorporated,
announced today that its wholly-owned
subsidiary, Headwaters Technology Innovation
Group (“HTIG”), delivered
its feasibility study to Philippine President
Gloria Arroyo in regards to its agreement
with the Philippine Department of Energy
to development coal-to-liquids projects
in that country. The study concluded
that it will be both technically and
economically feasible to move forward
in promoting coal liquefaction projects
in the Philippines. The project is slated
to produce up to 60,000 barrels per day
of clean burning fuel at an estimated
capital cost of $2.8 billion.
The proposed plant is a hybrid plant
which consists of a direct coal liquefaction
unit (DCL), a coal gasification and syngas
cleaning unit, a Fischer Tropsch synthesis
unit (FT) and a power block. DCL and
FT units will each produce about 30,000
barrels per day of liquid fuels. These
products will be blended together with
minimum downstream refining to meet the
required fuel specifications.
The facility will produce approximately
15% of Philippine’s transportation
fuel needs, resulting in estimated annual
fuel cost savings of $3.2 billion.
HTIG is the inventor and owner of the
HTI Coal Process for Direct Coal Liquefaction
(“DCL”) and has developed
proprietary Fischer Tropsch synthesis
catalyst technology. HTI’s DCL
technology is currently being evaluated
by Oil India Limited, and was selected
and licensed by Shenhua Group Corporation
of China for a 50,000 barrels-per-day
project in Inner Mongolia, currently
under construction. Also, its FT technology
will be further developed by the end
of 2006 through the demonstration project
with UK RACE.
H&WB Corp. of the Philippines is
planning to move forward on the hybrid
plant project by initiating financing
for the next phase in which selected
Philippine coals will be tested at HTIG
to collect design data for the development
of the front end engineering package.
HTIG intends to sign a license agreement
with H&WB prior to the starting of
the Phase II program.
About Headwaters Incorporated
Headwaters Incorporated is a world leader
in creating value through innovative
advancements in the utilization of
natural resources. Headwaters is a
diversified growth company providing
products, technologies and services
to the energy, construction and home
improvement industries. Through its
alternative energy, coal combustion
products, and building materials businesses,
the Company earns a growing revenue
stream that provides the capital needed
to expand and acquire synergistic new
business opportunities.
Forward Looking Statements
Certain statements contained in this
report are forward-looking statements
within the meaning of federal securities
laws and Headwaters intends that such
forward-looking statements be subject
to the safe-harbor created thereby.
Forward-looking statements include
Headwaters’ expectations
as to the managing and marketing of coal
combustion products, the production and
marketing of building materials and products,
the licensing of technology and chemical
sales to alternative fuel facilities,
the receipt of product sales, license
fees and royalty revenues, the development,
commercialization, and financing of new
technologies and other strategic business
opportunities and acquisitions, and other
information about Headwaters. Such statements
that are not purely historical by nature,
including those statements regarding
Headwaters’ future business plans,
the operation of facilities, the availability
of tax credits, the availability of feedstocks,
and the marketability of the coal combustion
products, building products, and synthetic
fuel, are forward-looking statements
within the meaning of the Private Securities
Litigation Reform Act of 1995 regarding
future events and our future results
that are based on current expectations,
estimates, forecasts, and projections
about the industries in which we operate
and the beliefs and assumptions of our
management. Actual results may vary materially
from such expectations. Words such as “expects,” “anticipates,” “targets,” “goals,” “projects,” “believes,” “seeks,” “estimates,” variations
of such words, and similar expressions
are intended to identify such forwardlooking
statements. Any statements that refer
to projections of our future financial
performance, our anticipated growth and
trends in our businesses, and other characterizations
of future events or circumstances, are
forward-looking.
In addition to matters affecting
the coal combustion product, alternative
fuel, and building products industries
or the economy generally, factors which
could cause actual results to differ
from expectations stated in forward-looking
statements include, among others, the
factors described in the captions entitled "Forward-looking
Statements" and “Risk Factors” in
Item 7 in Headwaters’ Annual Report
on Form 10-K for the fiscal year ended
September 30, 2004, Quarterly Reports
on Form 10-Q, and other periodic filings
and prospectuses.
Although Headwaters believes that its
expectations are based on reasonable
assumptions within the bounds of its
knowledge of its business and operations,
there can be no assurance that our results
of operations will not be adversely affected
by such factors. Unless legally required,
we undertake no obligation to revise
or update any forward-looking statements
for any reason. Readers are cautioned
not to place undue reliance on these
forward-looking statements, which speak
only as of the date of this report.
Our internet address is www.headwaters.com.
There we make available, free of charge,
our annual report on Form 10-K, quarterly
reports on Form 10-Q, current reports
on Form 8-K and any amendments to those
reports, as soon as reasonably practicable
after we electronically file such material
with, or furnish it to, the SEC. Our
reports can be accessed through the investor
relations section of our web site. |