Aug 01, 2014,
PHI Group Signs Agreements to Set Up Joint Venture Wood Pellet Factories in Vietnam
NEW YORK, NY and HANOI, VIETNAM, Jul 28, 2014 (Marketwired via COMTEX) — PHI Group, Inc., ( www.phigroupinc.com ) (otcqb:PHIL) (pinksheets:PHIL), a company focused on energy and natural resources, announced today that the Company has signed Memoranda of Understanding with two Vietnam-based wood processing companies to set up joint venture wood pellet factories in Central and Southern Vietnam.
Both wood processing companies have been in operation since the early 2000’s and have access to large, sustainable quality sources of raw materials for wood pellet manufacturing. The initial proposed combined capacities for the joint venture wood pellet plants are scheduled for 400,000 MT per year. PHI Group intends to own a minimum of 51% equity interest in each the contemplated joint venture enterprises.
The demand for wood pellets is primarily in Europe, Japan and Korea where carbon-reduction requirements are driving power utilities — particularly coal-fired power plants — to mix more wood pellets into their fuel supply. Under current targets, many European countries will be required to generate 35 percent or more of their electrical power from renewable sources by 2020. Western European demand for wood pellets is expected to triple by that time.
Henry Fahman, Chairman and CEO of PHI Group, Inc., said, “We are pleased to cooperate with the wood processing companies in Vietnam and their management team, both of which have a long history of operational, marketing and technical excellence. We believe the combined strengths of our joint ventures will create superior added value for all the shareholders and stakeholders.”
Safe Harbor: This news release contains forward-looking statements that are subject to certain risks and uncertainties that may cause actual results to differ materially from those projected on the basis of such forward-looking statements. Such forward-looking statements are made based upon management’s beliefs, as well as assumptions made by, and information currently available to, management pursuant to the “safe-harbor” provisions of the Private Securities Litigation Reform Act of 1995.
About PHI Group, Inc.
Targeting both conventional and renewable energy, PHI Group, Inc. invests in energy-related assets and other natural resources, cooperates with international partners to develop independent power plant projects, and provides renewable energy technologies in conjunction with select industry partners. In addition, the company is engaged in trading activity involving coal, oil, precious metals and other industrial commodities.