SOURCE: Novo Energies Corporation

Novo Energies Corporation

October 16, 2009 03:00 ET

Novo Energies Corporation Executes Ten-Year Supply Agreement With Colorado Tire Recycling for Tire Feed Stock

Novo Energies' First Tire to Energy Plant to Be Built and Operated in Colorado

NEW YORK, NY--(Marketwire - October 16, 2009) - Novo Energies Corporation (OTCBB: NVNC) ("Novo" or the "Company"), an alternative energy company, announces today that is has executed a ten-year supply contract to recycle tire feed stock with Colorado Tire Recycling LLC of Hudson, Colorado. Novo believes that this supply contract is a major step forward in developing a green energy technology that decreases pollutants and waste while conserving energy and natural resources.

Colorado Tire Recycling has agreed to supply tire derived fuel ("TDF") chips to Novo for ten (10) years beginning January 1, 2010. TDF chips are the integral feed stock for Novo's novel process to convert tires into fuel and fuel additives including but not limited to diesel and gasoline. Colorado Tire Recycling will provide a minimum of 6,000 tons of TDF for the first year of the contract and a minimum of 12,000 tons per year thereafter, with a further option to increase supply.

Novo plans to construct its first tire-to-fuel plant in the Denver, Colorado area and expects to have it fully operational during the second quarter of 2010. Novo, based on its novel technology, should be able to generate approximately 1,000,000 gallons of fuel or fuel additives during the first year of the operation of its plant and 2,000,000 gallons per year thereafter. As a result of the expected additional tire residual materials, Novo intends to also produce approximately 3,000 Metric tons of Carbon Black and 900 Metric tons of steel during the first year of operation and estimates that it will generate a minimum of 25,000 carbon credits per year.

"We are delighted to enter into a contract to secure a consistent feed stock from a reliable source such as Colorado Tire Recycling. Having this feed stock source will enable Novo to pursue the opening of its first plant in the United States and further our commitment to our shareholders and the environment," said Antonio Treminio, CEO & Chairman.

Dwain Immel, a Manager of Colorado Tire Recycling, LLC (CTR), states he "is excited about the development of a long term TDF supply contract with Novo Energies Corporation, and its new technology as it allows CTR to achieve a couple of its primary goals and objectives of recycling all of its scrap tires into higher value recycled end use products as well as promoting a cleaner and greener environment by recycling scrap tires rather than disposing these scrap tires in landfills in Colorado. The production of transportation fuels from scrap tires in Colorado will be a new technology that will continue to support Colorado's status as a leading renewable energy State and one all retail tire dealer customers should endorse since it will actually reduce carbon emissions rather than just simply burning the TDF product as an alternative fuel and generating additional carbon emissions."

About Novo Energies Corporation: Novo is a public company trading on the Over-the-Counter Bulletin Board Market ("OTCBB") under the symbol NVNC, with offices in New York City, Montreal and Quebec city. The Company's mission is to enter the renewable energy sector by developing and implementing renewable energy solutions while maintaining its commitment to conserve energy, natural resources and help reduce pollutants and unwanted wastes. Based upon a novel technology, Novo's wholly owned subsidiary WTL Renewable Energy, Inc. plans to build, own and operate renewable energy plants throughout North America that will transform residual plastics and tires to valuable liquid low carbon fuels such as diesel, gasoline and fuel additives.

About Colorado Tire Recycling: Colorado Tire Recycling, LLC is an independent tire recycling company based in Hudson, Colorado that currently collects and recycles over 12,000+ tons of scrap tires annually or approximately 25% of the 50,000 tons of scrap tires generated yearly from consumers in Colorado. A majority of these tires are recycled into a TDF product which in turn is used as a feedstock to produce crumb rubber or higher value end products. The company expects to increase its scrap tire volume to over 20,000 tons per year by the end of 2010.

FORWARD-LOOKING STATEMENTS:

Except for statements of historical fact, this news release contains certain "forward-looking statements" as defined by the Private Securities Litigation Reform Act of 1995, including, without limitation expectations, beliefs, plans and objectives regarding the development, use and marketability of products. Such forward-looking statements are based on present circumstances and on the Company's predictions with respect to events that have not occurred, that may not occur, or that may occur with different consequences and timing than those now assumed or anticipated. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, and are not guarantees of future performance or results and involve risks and uncertainties that could cause actual events or results to differ materially from the events or results expressed or implied by such forward-looking statements. Such factors include general economic and business conditions, the ability to successfully develop and market products, consumer and business consumption habits, the ability to fund operations and other factors that the Company has little or no control. Such forward-looking statements are made only as of the date of this release and the Company assumes no obligation to update forward-looking statements to reflect subsequent events or circumstances. Readers should not place undue reliance on these forward-looking statements. Risks, uncertainties and other factors are discussed in the Form 10-K of the Company for the fiscal year end March 31, 2009, and other documents filed from time to time by the Company with the Securities and Exchange Commission.

Contact Information

  • For more information, please contact:

    Mr. Antonio Treminio
    Chairman and Chief Executive Officer
    New York Tel: +1-212-315-9705
    Montreal: +1-514-840-3697
    Email: Email Contact
    www.novoenergies.com