West Palm Beach, FL / ACCESSWIRE / October 28, 2014 / Hydro Alternative Energy, Inc. ("HAE" or the "Company"), a West Palm Beach company which, together with its subsidiaries, plans to become an independent power provider, announced today that its wholly-owned subsidiary, HAE Colombia S.A.S, a company registered and formed in the country of Colombia ("HAECOL"), has, in furtherance to the Memorandum of Understanding ("MOU") which was executed between HAE and Generamos Energia SA ESP, a company registered and formed in the country of Colombia ("GESA") on June 9th, 2014, executed a binding expression of intent (the “Letter of Intent” or “LOI”) pursuant to which HAE and GESA agree, in good faith, to commence negotiations with a view toward HAECOL acquiring three (3) to-be-constructed Run-of-the-River type hydroelectric projects located in Antioquia, Colombia, Supia, with a engineered capacity of electrical power generation of approximately 5.71 MW, Uramita Phase I of 9.05 MW and Uramita Phase II of 19.4 MW from GESA and potentially entering into one or more specific power purchase agreements ("PPAs") with GESA and/or other related specific project matters (collectively, the "Project(s)"). The three hydroelectric projects are located in the Departments of Antioquia and Caldas, Colombia within various municipalities.
GESA is a privately held utility company authorized by the Superintendencia de Servicios Publicos Domiciliarios of Columbia to design, construct, operate and/or sell electrical power to the Colombian market. GESA was founded in 2007 by the owners of the Proyectistas y Civiles S.A.S, which is principally a civil engineering firm with emphasis on commercial architectural and structural design, commercial construction and engineering services.
The LOI sets forth GESA's intent to sell in part or in whole to HAECOL the Projects on a case by case basis pursuant to written agreement(s) by and between HAE, HAECOL and GESA. Pursuant to the LOI, which expires April 2015, both parties shall promptly and in good faith seek to negotiate one or more definitive sales contracts for each project and the respective PPA's, with terms and conditions satisfactory to both parties.
Mark Antonucci, CEO of HAE, stated: "This LOI evidences HAE's efforts to expand our role in the hydroelectric power generation industry while keeping true to our mission: to become a leading worldwide independent power provider focused on utilizing hydrokinetic and other power development sources to generate electric power worldwide, cost-effectively, reliably and profitably, with minimal to no ecological impact." Mr. Antonucci was further quoted as saying, "We believe that certain hydroelectric forms of power generation can be environmentally friendly and have minimal ecological impact while delivering consistent electrical power generation."
Luis Bernal, HAE's Chief Relationship Officer, who was instrumental in procuring the LOI, was quoted as saying, "Hydroelectric power generation is one of Colombia's main power development sources, comprising more than 65% of the total installed capacity in Colombia and growing. The Colombian government has created a transparent and well regulated energy market with solid private investor legislation for the Colombian and foreign investors."
Larry Gomez, CEO of GESA, said: "We believe GESA's experience in developing electric power generation projects in Colombia, together with our knowledge of local practices and procedures, will be instrumental in facilitating our and HAE's joint project efforts. We are familiar with HAE's hydrokinetic energy development efforts and accomplishments to date, including the development of its proprietary hydrokinetic Oceanus(TM) technology, and welcome the opportunity to partner with HAE."
Mr. Antonucci added "While HAE remains committed to the deployment of its proprietary hydrokinetic Oceanus(TM) technology in the waters off the coast of Durban, South Africa, this LOI affords HAE the opportunity to expand its prospective markets into other areas of hydroelectric power provider while staying true to our mission."
HAE's business model provides for utilizing its own proprietary technology, identifying and locating existing and new technologies, and, when appropriate, partnering with others, for its power development and generation needs.
Forward Looking Statements
Certain statements made by Hydro Alternative Energy, Inc. ("HAE"), its subsidiaries and members of its management team on its behalf in this release and other periodic oral and written statements, regarding HAE's operating performance, events or developments that HAE believes or expects to occur in the future, including those that discuss anticipated financial results, strategies, goals, outlook or other non-historical matters, or which relate to future sales, earnings expectations, cost savings, growth of HAE or of the market for its products and services, or general belief in HAE's expectations of future operating results are forward-looking statements. All such forward-looking statements are subject to risks and uncertainties, including the need by HAE for substantial additional working capital to materially advance its business plan, including the projects discussed in this press release; no assurances that HAE will be able to secure such capital or the terms upon which such capital may be secured, if at all; technology and other challenges involved in the development and operation of HAE's planned products and services, including the performance of technology which may be utilized by HAE, compliance with local, regional and national power generation, environmental and related laws, and local, regional and national governmental cooperation; local, regional and national economic considerations, including residential and industrial energy demand; foreign currency effects; HAE's ability to protect its intellectual property; the ability to integrate acquisitions successfully and the risk that expected synergies may not be fully realized or may take longer to realize than expected; and competitors' product introductions, pricing and other competitive pressures, as well as other risk factors and uncertainties. Forward-looking statements included herein are made as of the date hereof, and HAE undertakes no obligation to update publicly such statements to reflect subsequent events or circumstances. Actual results could differ materially from anticipated results.
Contact
Hydro Alternative Energy, Inc.
Phone: 1-561-900-7200
Email: [email protected]
SOURCE: Hydro Alternative Energy, Inc.