TAMPA, Fla., Sept. 27, 2006 (PRIMEZONE) -- Internal Hydro International, Inc. (OTCBB:IHDR) (www.internalhydro.com) announced today that it has entered into a final agreement and LLC operating agreement which will result in the production of a 100 ton per day tire to oil remediation project near Springfield, Illinois. The Joint Venture with Wastech, Inc., of Charleston, South Carolina means that the Springfield Energy Project, as the Joint Venture will be called, will have access to a ready supply of tires at no cost to the JV and a ready to build 700 acre site. The JV projects a before tax annual revenue, without potential environmental or tax credits, of over $6 million. With existing large revenues for the JV at its inception from existing contracts and pending on site leases, coal fly ash disposal and sale, and coal gob sale from the site of over $1 million annually, the capital requirements for the plant construction and associated costs of the site are to be project bank and asset debt, and thus free from company equity investment. IHDR is a 49% owner of the LLC, with joint management control.
With all tires to be supplied at no cost and possible positive revenue from tipping fees on long term contracts, including shipping, the Joint Venture will have major competitive advantages over other tire to fuel and byproducts operations. The site, located in Pawnee County, Illinois, which Wastech has contracted for purchase, is located on over 700 acres of existing mines, coal fly ash and waste coal storage located next to a utility plant, is on a railhead, major roads, and has nearby refineries to purchase the oil produced. With seven existing methane wells on site, the energy supply for the plant is aimed at total self generation from those wells and the large gas output from the tire pyrolysis systems utilized. The quality carbon output from the plant is projected to be over 16,000,000 pounds per year. The ability of partner Wastech to sell the quality steel byproduct produced with existing relations is another advantage to the JV's revenue.
As part of the agreement, Wastech, with over 30 years of waste collection and remediation experience, and its highly proprietary sources for tires will have a plentiful supply at a potential profit margin for the JV. As well, Wastech will use its transportation resources to ship the tires to the site, and the byproducts from the plant site to purchasers. IHDR will use its core energy marketing experience for sale of the oil, carbon and gas through existing relations. Management of the plant will be supplied by IHDR, which has been training personnel at an existing pyrolysis plant. Additional engineering oversight will be supplied by IHDR's experience on its board in such energy plant projects, along with local engineers who have been retained for the project. Expected carbon output is being targeted for sale into existing sources that IHDR and Wastech have identified to take the material for multiple uses in industries, energy, and construction. With a tire pyrolysis plant that produces quality oil, gas, carbon and steel from each tire, using a vacuum pyrolysis system, at low energy use, the environmental and tax credits are also revenue sources that have not been counted in the existing revenue model but are expected additional contributions. The Springfield Energy Project expects commencement of the plant build out to occur before the end of 2006 for phase II, while much of the phase I existing coal and disposal operations is already in place.
About Internal Hydro:
Internal Hydro International, Inc. is an alternative energy company that developed a clean energy power system, the Energy Commander Systems, that utilizes a patented technology, using waste water, fluid or gas flow from any source where flow pressure is present, and yet wasted, to create electricity. Internal Hydro has licensed a tire remediation to fuel and ethanol waste (DDG) to biofuels technology for use on ethanol plants domestically. IHDR is international in scope, with European production and marketing for its core technologies, and is preparing to enter the market with its core Energy Commander Systems. Internal Hydro is well positioned to gain major market share and dominate the niche of hydro and renewable energy in the fragmented alternative energy marketplace. For more information, please visit the Company's Web site at www.InternalHydro.com.
Forward-Looking Statements: This release contains forward-looking statements, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Expressions of future goals and similar expressions reflecting something other than historical fact are intended to identify forward-looking statements, but are not the exclusive means of identifying such statements. These forward-looking statements involve a number of risks and uncertainties, including the timely development and market acceptance of products and technologies, successful integration of acquisitions, the ability to secure additional sources of financing, the ability to reduce operating expenses and other factors. The actual results that the company achieves may differ materially from any forward-looking statements due to such risks and uncertainties. The company undertakes no obligations to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release.