SOURCE: ECO2 Forests Inc.

ECO2 Forests Inc.

April 06, 2010 07:30 ET

ECO2 Forests Announce Sustainable Forest Project on US Soil

SACRAMENTO, CA and QUEENSLAND, AUSTRALIA--(Marketwire - April 6, 2010) - ECO2 Forests Inc. (PINKSHEETS: ECOF) has announced its first Global Forestry Plan project on US soil will be a planned 14,000 acre Kiri Tree forest program in Washoe County, Nevada.

The project will be known as the US Sustainable Forest Program located in Washoe County, Nevada and is intended to result in up to 3 million Kiri Trees planted on US soil. This is the first such project in the United States of this magnitude.

"ECO2 Forests intends to establish a Program of Sustainable Forest projects in Washoe County, Nevada. Each project is forecast to contain approximately 2,000 acres of land to be forested. The Smoke Creek Project is the first project, planned to commence immediately. It is the first phase of a 14,000 acre program of 7 such forecasted projects forming the US Sustainable Forest Program," ECO2 Forests CEO Collie Christensen said today.

"Due to the unique regenerative nature of the Kiri Tree being planted and its ability to regrow from the stump after each harvest, the project is planned to operate for approximately 50 years, subject to certain conditions. This period coincides with the lease terms of the total 78,000 acre network of ranches which includes the water rights to ensure sufficient irrigation for the entire project."

After seven years the Kiri Tree reaches maturity and operates in a sustainable cycle. This is forecast to produce in excess of $220 million of revenue per year for the Washoe County US Sustainable Forest Program. As average operational costs are expected to be contained around 20%, this projection would result in significant potential profits to the Company and is anticipated to deliver long term returns to our shareholders.

Sustainable lumber production is forecast to deliver 80 million board feet (190,000m3) annually. The sustainable forest naturally regenerates after each seven year harvest, negating the need to replant or log other parcels of forested land that have existed in many cases for centuries.

"This is a fantastic project for ECO2 Forests, our land partners, associates and for our forests that are under threat from logging in the United States. By growing our sustainable forests we can help stop the logging of forests that have existed for hundreds of years and enjoyed by thousands of families every year," remarked Christensen.

In accordance with the ECO2 Forests E4 Philosophy, the local economy would receive a significant boost with local employment.

"ECO2 Forests anticipate that we will employ 280 US workers who live in the local area which we hope will provide another boost to the local economy, with the planned commencement of planting in mid-May of the initial nursery site," Christensen added.

Additional capital raising of up to an initial $10 million to accredited investors has already commenced. This capital raising is aimed to ensure the project is suitably funded to maximize returns for investors and to deliver shareholder value for ECO2 Forests shareholders.

Direct investment opportunities into the US Sustainable Forest Program are now available to suitable accredited Investors. Eligibility is subject to US state and federal regulation. All details are located through the 'Investors' portal on the ECO2 Forests website, www.eco2forest.com.

The information below represents the company forecasts on the entire project based on the sustainable cycle model in the Global Forestry Plan.

The projected figures from the project in full operation*:
Full 7-Year cycle -- 14,000 acres

  • 3 million Kiri Trees planted
  • 560 million board feet (1.3 million m3) of sustainable lumber produced for sale
  • $1.49 billion in sales of sustainable lumber
  • 6.5 million tonnes of CO2 absorbed from the atmosphere (carbon sequestration)
  • 6.5 million carbon credits generated
  • $84 million carbon credit sales
    Total projected revenue per full 7-year cycle -- $1.5 billion

Annual revenue -- 2,000 acres in full operation*:

  • 450,000 Kiri Trees planted
  • 80 million board feet (1.3 million m3) of sustainable lumber harvested for sale, every seven years
  • $213 million in sales of sustainable lumber
  • 923 million tons of CO2 absorbed from the atmosphere (carbon sequestration)
  • 6.5 million carbon credits generated
  • $12 million carbon credit sales
    Total projected annual revenue -- $225 million

*All figures are based on company forecasts and industry analysis of lumber and carbon credit at industry wholesale prices.

About ECO2 Forests Inc.
ECO2 Forests is a progressive international forestry company focused on reforestation, afforestation and avoided deforestation projects for the generation and sale of sustainable lumber and carbon credits to the global markets.

Headquartered in Sacramento, California, the Company has adopted an 'E4 Philosophy' to achieve positive Environmental, Economic, Employment and Educational outcomes through its projects.

For more information please visit www.eco2forests.com.

Forward-Looking Statements
This press release contains statements which may constitute "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. Important factors currently known to management that could cause actual results to differ materially from those in forward-looking statements include fluctuation of operating results, the ability to compete successfully, and the ability to complete before-mentioned transactions. The Company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events, or changes to future operating results.

Contact Information

  • For all media enquiries please contact:
    United States and International
    Abbi Whitaker
    Abbi Public Relations Inc.
    P) (775) 323 2977
    M) (775) 722 2254
    E) Email Contact

    Australia
    Andrew Laing
    ECO2 Forests Inc.
    P) (+61) 420 971 030
    E) Email Contact
    W) www.eco2forests.com