BRIGHT GREEN ANNOUNCES ITS EXPANSION CONTINUATION WITH A $100 MILLION SOLAR POWERED GENERATION FIELD TO SUPPLY HEAT AND ELECTRICITY TO ITS DRUG PRODUCTION AND MANUFACTURING FACILITY.
- BGXX transitions to solar energy for electricity and heating needs, installing a 102-megawatt solar field.
- Commitment to carbon neutrality in production and drug manufacturing in Grants, New Mexico.
- Partnership with Solar Installation Companies in New Mexico for the project.
- Installation of high-efficiency boilers from Precision Boilers, LLC for heating requirements.
- Utilization of electric boilers to heat hot water during low sun periods.
- Manufacture of VP panels from Maxeon Solar Technologies for the solar manufacturing plant.
- Cost savings estimated in the hundreds of millions over a 30-year lifespan.
- Funding from EB-5 investment, federal grants, loans, and supply contracts for the project.
- Creation of construction jobs and economic benefits for the rural area.
- None.
Insights
An initiative by Bright Green Corporation to install a 102-megawatt solar field represents a significant investment in renewable energy infrastructure, which is expected to have a material impact on the company's operational costs and sustainability profile. This strategic move towards solar energy, particularly in an industry with high energy demands such as pharmaceutical manufacturing, can lead to substantial cost savings over time. Considering the 30-year lifespan of the solar equipment and the expected savings in the hundreds of millions, this could potentially improve the company's net present value (NPV) and reduce its carbon footprint, aligning with global sustainability goals and possibly attracting ESG-focused investors.
Furthermore, the inclusion of a Power Purchase Agreement (PPA) allows the company to sell excess power, creating an additional revenue stream and improving the project's return on investment (ROI). The commitment to clean energy also aligns with federal policies, which may provide BGXX with access to infrastructure grants and loans, thus reducing the financial burden of the project and potentially improving the company's balance sheet.
The financial implications of BGXX's solar field project are multifaceted. The upfront cost of $250 million for the Dalsem expansion, coupled with the solar installation, is a considerable capital expenditure. However, the project's financing strategy, which includes EB-5 investment, federal grants and loans, suggests a diversified approach to funding that could mitigate financial risks. Baker Tilly's construction cost modeling is crucial in providing investors with a clear picture of the project's financial viability.
From an investment perspective, the long-term cost savings and potential for additional revenue through PPAs could enhance shareholder value. Additionally, by margining supply contracts, BGXX may secure future revenue, which could lead to improved financial forecasts and potentially bolster the company's stock price. However, investors should consider the risks associated with construction timelines, technology performance and regulatory changes in the renewable energy sector.
The transition from natural gas and heavy oil to solar energy by BGXX is a substantial move towards sustainable operations. The use of high-efficiency electric boilers powered by solar energy is an innovative approach to meeting the company's heating requirements during periods of low sunlight. This could set a precedent in the pharmaceutical industry for energy resilience and efficiency.
The choice of VP panels from Maxeon Solar Technologies indicates a preference for high-quality components, which could ensure system reliability and performance. The company's commitment to carbon neutrality can serve as a case study for the adoption of renewable energy in energy-intensive industries. The project's success might encourage other companies to consider similar investments, which could accelerate the transition to clean energy and reduce the industry's overall carbon emissions.
GRANTS, NEW MEXICO, March 14, 2024 (GLOBE NEWSWIRE) -- Bright Green Corporation (Nasdaq: BGXX) (“Bright Green” or the “Company”) Today announced that BGXX will install a 102-megawatt solar field to power the electricity and heating requirements for the new
The company started the bid process and is working with several Solar Installation Companies domiciled in New Mexico to install a 102-Megawatt Solar Power Generation field.
The successful bid will also include a Power Purchase Agreement from local utilities to purchase the excess power during peak times. The Company has committed and will install three high efficiency boilers manufactured from Precision Boilers, LLC in Morristown, Tennessee for their high efficiency 40 megawatt boilers to be powered by the new solar field. The electric boilers will heat hot water that is stored in massive hot water storage tanks at 200 degrees to be used for the heating requirements during low sun periods.
The VP panels will be manufactured from Singapore based Maxeon Solar Technologies for the new state-of-the-art solar manufacturing plant in Albuquerque, New Mexico.
BGXX has committed to clean renewable energy to supply the massive heat and electricity loads to the 1 million existing and 7 million sq. ft. expansion. Baker Tilly has completed the modeling for construction cost and related construction jobs for the EB-5 investment opportunity. The cost savings over the 30-year life span of the equipment will be in the hundreds of millions of dollars the Company estimates.
In addition to the EB-5 funding, additional financing, if needed for the project, will be derived from federal infrastructure grants, loans and margining supply contracts for the BGXX, Drugs Made in America platform for this particular rural project.
The building out of the solar field will take about 30 months and this will allow the company to better manage their EB-5 investment jobs creation opportuinity.
Lynn Stockwell, the company founder, and Chairwoman of Bright Green Corporation says our team is aligned “this source of energy will reduce and fix our substantial heat and electric costs annually. The future growth of this company is highly dependent on Innovation and long-term efficiency. The uncertainty of the long-term costs and pricing predicated on supply and demand for the traditional fossil fuels for this type of mega factory compared to clean energy from the sun advances the Company’s economics and ethos. This is the right corporate policy, locating in rural America has some challenges that can be overcome, and implementing clean renewable energy can control our energy costs long into the future and reward our shareholders with predictability and sustainability resulting in an American domiciled low-cost producer of “Drugs Made in America”. In addition, reaping the benefits of unprecedented long term federal and state tax credits is an attribute that shareholders can consider when researching an investment in BGXX.
ABOUT BRIGHT GREEN CORPORATION
Bright Green is one of the very few companies selected by the New Mexico Board of Pharmacy and the US government for the production, API and drug manufacture, market and distribute Schedule 1-V plant-based drugs API including opium, cannabis and cannabis-related products for research, pharmaceutical applications and affiliated export. Our approval based on already agreed terms from the U.S. Drug Enforcement Administration gives us the opportunity to advance our vision of improving quality of life through the opportunities presented by cannabis-derived therapies and more. To learn more, visit www.brightgreen.us
Cautionary Note Regarding Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are made as of the date they were first issued and were based on current expectations, estimates, forecasts and projections as well as the beliefs and assumptions of management as of such date. Words such as “expect,” “anticipate,” “should,” “believe,” “hope,” “target,” “project,” “goals,” “estimate,” “potential,” “predict,” “may,” “will,” “might,” “could,” “intend,” “shall” and variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond the Company’s control, including but not limited to, the inability of the Company to raise funds under the Company’s EB-5 program, and the impact that new officers, directors and employees may have on the Company and the Company’s business and results of operations. The Company’s actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to, risks detailed in the Company’s Annual Report on Form 10-K and Quarterly Report on Form 10-Q, as amended and supplemented, as well as other documents that may be filed by the Company from time to time with the SEC. The forward-looking statements included in this press release represent the Company’s views as of the date of this press release. The Company anticipates that subsequent events and developments will cause its views to change. The Company undertakes no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. These forward-looking statements should not be relied upon as representing the Company’s views as of any date subsequent to the date of this press release. Additional information regarding these and other factors that could affect the Company’s results is included in the
Company’s SEC filings, which may be obtained by visiting the SEC's website at www.sec.gov.
Media Contacts: Interdependence Public Relations Owen Phillips / Grace Connor
BrightGreen@Interdependence.com
(310) 745-1407
Media Inquiries & Investor Relations Contact
ir@brightgreen.us
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