SOURCE: Eastern Environment Solutions Corp.

February 09, 2010 09:00 ET

Eastern Environment to Partner With Veolia Environment to Generate Clean Energy from Landfill Gas

NEW YORK, NY and HARBIN, CHINA--(Marketwire - February 9, 2010) - Eastern Environment Solutions Corporation (OTCBB: EESC), a leading provider of municipal solid waste (MSW) processing and disposal services in northeast China, entered into a letter of intent with Veolia Environment, one of the world's leading environmental services firms, on a project to establish a power plant that would utilize recaptured landfill gas from Eastern Environment's Harbin landfill to power turbines and generate electricity.

The Harbin landfill has capacity to dispose of 1,200 tons of municipal solid waste per day, or approximately 34% of the total municipal solid waste produced by the population of Harbin. This green partnership is intended to simultaneously reduce the levels of landfill gas released into the environment, while also generating significant amounts of electricity.

Landfills generate gas that includes a high proportion of methane (approximately 50%), a greenhouse gas that remains in the atmosphere for nine to fifteen years. Methane has a pungent odor and traps heat at twenty times the rate of carbon dioxide. Methane is also an important energy source, with a high calorific value and can be used to replace fossil fuels as a source of energy. Methane is produced at landfills in anaerobic digesters and in wastewater treatment plant digesters. By working together, Eastern Environment and Veolia will transform a major Chinese landfill from a source of foul greenhouse gas into a powerful producer of green electricity.

Eastern Environment and Veolia intend to work on two projects, one is for the collection and utilization of landfill gas, and the other is for implementing a Clean Development Mechanism (CDM). The CDM is a market-based financial instrument set up under the Kyoto Protocol that allows industrialized countries to invest in developing country projects and acquire greenhouse gas emission reduction credits, or carbon credits, that they can then use to meet their greenhouse gas reduction targets under the protocol. A project in a developing country that reduces greenhouse gas emissions, relative to a baseline, can generate an emissions reduction credit. Under the CDM, Eastern Environment can sell the emission reduction credits, once they are certified.

Ms. Feng Yan, Chairman and Chief Executive Officer of Eastern Environment Solutions Corporation, commented, "We are extremely pleased to have Veolia as our partner. Landfill gas, and specifically methane, is an excellent source of green energy. Veolia's advanced technology, combined with our current infrastructure to recapture landfill gas, will enable the conversion of methane into electricity at our Harbin landfill. Methane is 20 times more powerful a greenhouse gas precursor than CO2. Not only will we be able to create electricity, but by reducing the emission of this greenhouse gas, we can receive payment from the sale of carbon credits in the marketplace, thus producing yet another source of revenue for the company. This latest agreement further illustrates our commitment to adopting the latest technologies that will ensure a clean environment for future generations."

About Veolia Environment

Veolia Environment is the world leader in environmental services. With operations on every continent and more than 336,013 employees, Veolia provides customized solutions to meet the needs of municipal and industrial customers in four complementary segments: water, environmental services, energy services and passenger transportation. Veolia Environment recorded revenue of 36.2 billion euros in 2008.

About Eastern Environment Solutions Corp.

Eastern Environment Solutions Corporation is the first regional environmental engineering company to operate under a Build-Operate-Transfer ("BOT") contract in China. The landfill is 17 km away from urban areas. The Harbin Municipal Urban Administrative Bureau, authorized by the Harbin Municipal Government, signed a franchise contract for 17 years with the company. The landfill can be used to dispose of 1,200 tons of MSW per day, or approximately 34% of the total municipal solid waste produced by the population of Harbin. Additional information about the Company is available at www.useesc.com.

This press release may contain forward-looking statements. Such statements include, among others, those concerning the company's expected financial performance and strategic and operational plans, as well as all assumptions, expectations, predictions, intentions or beliefs about future events. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and that a number of risks and uncertainties could cause actual results of the Company to differ materially from those anticipated, expressed or implied in the forward-looking statements. The words "believe," "expect," "anticipate," "project," "targets," "optimistic," "intend," "aim," "will" or similar expressions are intended to identify forward-looking statements. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. Risks and uncertainties that could cause actual results to differ materially from those anticipated include risks related to the company's need for capital, the company's ability to overcome competition in its market; the impact that a downturn or negative changes in the price of the company's products could have on its business and profitability; the company's ability to simultaneously fund the implementation of its business plan and invest in new projects; economic, political, regulatory, and legal risks associated with expansion; or the loss of key members of the company's senior management; or any of the factors and risks mentioned in the "Risk Factors" sections of the Company's Annual Report on Form 10-K for the year ended December 31, 2008. The Company assumes no obligation, and does not intend, to update any forward-looking statements, except as required by law.

Contact Information

  • Contact:
    Crescendo Communications, LLC
    David Waldman or Klea Theoharis
    Tel: (212) 671-1020
    E-mail: eesc@crescendo-ir.com