Envirostar - Watch closely, EEL is getting set for

  1. 713 Posts.
    This one is ready for another run!! Why?

    The last two times Envirostar has looked hopeless, it stages a remarkable recovery, gets support and runs wild... The frequency is increasing. EEL hit 12 or 13c when I called it as a buy in the first week of March 2002 and then moved nicely on heavy buying to 32c. It then slowly but surely slid down again on light volume to 13c by the end of May and then like magic, the buying and the volume came back in and up it goes to 27c.

    In short, this stock has been quite regular in falling and then running hard.. a good trade if you pick your entry levels.

    Generally when all looks helpless on this stock and Market Depth looks sick then it is getting ready to turn the corner.. watch for sellers to thin and bids to increase but be quick as the window of opportunity is small.

    Interestingly enough Tricom Securities, one of the net buyers of EEL is sitting patiently with a 500,000 bid at 14c hoping to cash in on the trading cycle.

    I doubt if we will see it any lower than 14-15c before it runs.. especially with the Turbine arriving in QLD any day and the New Green Waste to Energy Power Plant launching in the very near future!

    Current Bid 16c, Ask 18c but it may come back a touch..


    HOMEX - Sydney


    * Steam Generator/Boiler and FBC system fabrications complete and
    dispatched. It is expected to arrive on site on 29 June.

    * Turbine Generator (Westinghouse 5MW) final balancing at workshop
    completes ready for dispatch and is expected to arrive on site on
    19th June.

    * EnviroStar Green Power Accreditation granted by SEDA.

    * EnviroStar Generation Licence granted by the Queensland Office of

    * Renewable Energy Registration issued by the ACT Office of Renewable
    Energy Regulator (ORER). Accreditation application submitted.

    * NEMMCO approval for Unscheduled/ Market Generation expected

    * Interconnection Works to Electricity Grids finalised with Energex.

    * Power Sales Contract signed with Energy Australia.

    * Fuel Supply Agreements signed.

    * Project is utilising commercially proven technology.

    * Authority Approvals and comprehensive Environmental Protection
    Authorities (EPA) Licenses for the projects have been granted.


    EnviroStar Energy Limited is pleased to announce that the final major
    equipment (the key component of the Stapylton Plant), namely the
    Steam Generator/Boiler have now been completely fabricated and are in
    transit to site where they are to be installed by the EPC Contractor,
    Energy Equipment Australia Pty Ltd. Commissioning is scheduled for
    29th June.

    The steam generator weighs approximately 100 tonnes having dimensions
    of 8 metre wide by 8 metre in length, and stands 22 metre tall.

    Transporting these key components for the Plant is a major task
    involving significant traffic disruption and requiring comprehensive
    permitting from and the assistance of the RTA and the DMR.

    The Energy Equipment Fluid Bed Combustion (EEFBC) system being the
    patented technology employed at Stapylton under exclusive license to
    EnviroStar, operates as a single unit with the Steam Generator. This
    "one of a kind system" is designed and fabricated to prevent multiple
    aggressive expansions and contractions when the two sections are
    exposed to a high pressure and temperature of up to 1,200 deg C. This
    system also prevents any gas leakage from the combustion chamber
    operating under negative pressurization.

    The bottom part of the combustion chamber, known as the 'bed', is
    filled with sand and when pressurized through injectors the sand
    moves in a liquid form referred to as 'fludised'. The chamber is
    heated to a high temperature and the sand retains the heat. The
    process is known as Fluid Bed Combustion (FBC).

    The EEFBC will be operating at a temperature of 850 deg C in the bed
    section where fuel (green waste) with high moisture contents, for
    example grass off cuts, is fed. The fuel simultaneously combusts and
    produces hot gas which ignites to create a step-up in temperature to
    1200 deg C releasing enormous heat energy. The heat energy is fired
    directly below the superheated water tubes in the Steam Generator to
    produce a superheated steam with a high pressure (35MPa) and a high
    temperature (400 deg C). The superheated steam is then injected into
    the Steam Turbine, which drives the electricity generator.

    The EEFBC worldwide patents which relate to processes which control
    the extreme combustion temperatures in EnviroStar's Stapylton Plant
    creates a system which prevents the formation of toxic and greenhouse
    gases and thereby prevents toxic gas emissions. Therefore,
    EnviroStar's Electricity Plant at Stapylton qualifies for both
    Renewable Energy Credits and Carbon Credits.

    The FBC technology has been recognised to be the world's best
    practice for waste to energy conversion as stated by the University
    of California.

    The foundation slabs completed at Stapylton include more than 650
    anchor bolts which weighing over 20 tonnes and which have been fixed
    under survey with high precision. The key components will be
    installed on these anchor bolts.

    The Fuel-Handling Unit is progressing into its first week of
    installation. This state of the art technique includes a positive
    displacement and feed system for the green waste and is designed to
    have the capacity to store enough fuel for 12 hours operation with a
    feed rate system which can handle 150 tonnes of green waste per day.

    On the 8th of February this year, EnviroStar announced it had
    received its Generating License from the State Government of
    Queensland, Generating Authority G01/02.

    On 26th March, EnviroStar announced its registration with the Office
    of Renewable Energy (ORER). Progress in the final construction of
    EnviroStar's 5MW Stapylton Plant puts the Company in a position where
    it can begin electricity generation to meet sales contracts with
    Energy Australia and thereby enjoy the benefit of a long term and
    sustainable cash flow commencing in the third quarter of this year.

    EnviroStar is now in a position to begin to plan the next phase which
    is to initiate Stage 2, the implementation of the Company's Green
    Power projects which have obtained Approvals, EPA Licenses and Signed
    Power Sales Contracts for 20MWe at Stapylton and 20MWe at Morwell in

    For further information, please view our website
    (http://www.envirostar.com.au) or contact James Kwok CEO, via the
    communication points shown below.

    Telephone Number: (02) 9232 0788

    Facsimile Number: (02) 9232 0799

    Email address: [email protected]

    James Kwok CEO

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