BESG has contracts for 34 towns in the state of Pernambuco, Brazil, with additional towns requesting contracts.
BESG claims that it offers an alternative to the traditional landfill approach by reducing municipal solid waste using natural processes, extracting marketable recyclates from the waste input stream, and enabling the residual biomass to be used as feedstock for generating renewable energy in an environmental friendly manner.
Timothy Koziol, CEO of GEM, said: “This waste-to-energy (WTE) project is enormous in scope, and GEM will have to consider the best use of resources to accomplish the management of this project, but we are pleased to have been chosen and look forward to making this project the main focus of our business activities. GEM will therefore not complete the financing and acquisition of California Living Waters.
“The formal purchase agreements called for GEM to make a payment to United Stated Environmental Response on June 30, 2010, which we will not make. Although we believe in the opportunity to build a strong and profitable company with Southern California Waste Water as a foundational entity, we will change our focus to the WTE arena and build an international enterprise with BESG, beginning with Brazil.”
The initial installation of a facility in the state of Pernambuco, Brazil is expected to serve primarily organic materials from towns in two states. It is anticipated that 4,900,000 tons per year of feedstock from over 368 municipalities will be managed by this initial facility by the end of 2011.
