ARE-Energy Power Plant Completes



NEWS RELEASE

ARE-Energy Power Plant Completes
One Year of Service on B-85 Biodiesel
Scrap shredder benefits from fuel-efficient, low-cost power

ROANOKE, Va., (November 29, 2007) -- One of ARE-Energy’s on-site power plants has completed one year, or more than 2,000 hours, of operations on biodiesel, providing fuel-efficient, low-cost and environmentally friendly power to a scrap shredding operation.

The 1000 Series skid-mounted, 2.8-megawatt Generator Set, operating on B-85 ASTM 6751 biodiesel, also met EPA air emission requirements to power the scrap metal shredder in Lynchburg, Va.

“Biodiesel plants—using a variety of feedstocks—are springing up around the world. Many are in regions and countries where electricity is expensive and unreliable,” says Bruce Brenner, chairman of ARE-Energy. “The fact that our power plant is able to generate power for one year of continuous operations, and do so fuel efficiently and at low maintenance costs, demonstrates its place in the market as an enticing alternative for dependable and affordable electricity.”

ARE-Energy’s generator set, built from a re-manufactured GE locomotive engine, powers a massive 5,000-horsepower shredder operation at ARE-Energy’s sister company, Cycle Systems. The shredder tears mixed, unprepared scrap iron such as automobiles, appliances and foundry scrap into fist-size pieces. In October, as part of the 2,000 hours, the unit produced more than 10,000 tons of clean shredded scrap.

The momentum of the heavy rotor and hammers of the shredder does a lot of the shredding without extra fuel. Still, the re-manufactured GE 3900-horsepower medium-speed engine was originally projected to use 170 gallons per hour; the unit actually has been using less than 100 gallons per hour. The maintenance direct cost during the 2,000 hours of running was under .03 cents per kilowatt-hour.

“The results of the fuel efficiency and maintenance cost in this application, as well as the reliability of the engine, exceeded our expectations,” Brenner says. “In doing so, the power plant achieved 99 percent reliability with capacity of 2.8 megawatts of electric power.”

During the test period the fuel pumps were dismantled and checked for carbon, dirt and dust, and the fuel pump rods were sprayed and cleaned daily. To compensate for known gelling in freezing temperatures, ARE-Energy’s durable engine is able to run on different fuel blends, providing additional flexibility in challenging conditions.

Air-emission testing established a base line that will allow ARE-Energy, with the addition of SCR equipment, to meet most of the parameters of non-attainment areas in the United States.

ARE-Energy’s unit can also be packaged in three easily transportable, patent-pending, custom built high-cube intermodal containers that serve as permanent, on-site housing. When CHP (Combined Heat and Power) is added in a fourth container for continuous applications, bio-diesel fuel efficiency approaches 70 percent. This combination reduces transportation, installation and operating costs.

ABOUT ARE-ENERGY
ARE-ENERGY is a division of American Railroad Equipment LLC, the sister company of Cycle Systems Inc., with more than 90 years in scrap processing and recycling. ARE was created in 2000 to focus on dismantling, recycling and marketing retired and surplus railroad locomotives and parts. Learn more at www.are-energy.com.
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Contact:
Thomas Becher
tba Public Relations and Advertising
540.772.3942
tbecher@tbtheagency.com