TAMPA, FL -- (Marketwire) -- 08/02/11 -- MagneGas Corporation ('MagneGas' or the 'Company') (OTCBB: MNGA), the producer of a technology that converts liquid waste into a hydrogen-based metal working fuel and natural gas alternative, announced today that MagneGas Technology (Beijing) Co. Ltd., the Company's joint venture ('JV') with Beijing-based DDI Industry International ('DDI'), is now established and initiating sales efforts into the Chinese marketplace. The official website of the JV is www.magnegas.com.cn. The 7-acre research and development and production facility, located in Beijing, is now online and has already hosted multiple governmental and commercial group visits. MagneGas Technology (Beijing) Co. Ltd has begun producing and testing fuel for metal working and automotive applications. U.S.-based MagneGas Corporation owns 20% of this JV and will thus receive an equivalent amount of all China market net proceeds, in perpetuity. A representative from MagneGas Corp. also has a seat on the China JV Board of Directors.
'We are extremely pleased to announce the launch of Magnegas Technology (Beijing) Co. Ltd, and the long-awaited MagneGas Technology China market entrance,' stated joint venture CEO Allen Feng. 'China suffers from a liquid waste crisis -- our fresh water is flooded with household and industrial waste, and the time has come for truly innovative solutions. We believe the MagneGas Technology is exactly that type of solution, and all initial feedback we have received indicates strong potential demand. We look forward to keeping MNGA investors abreast of our developments and financial performance.'
'New renewable energy technologies have both the Central Government's and the China investment industry's maximum attention; both believe that our new acetylene-replacing clean fuel can eventually meet established market demand,' Feng added. 'In China, the annual consumption of acetylene is 100 billion cubic meters, creating a more than $3 billion market(1).'
In July of 2011, MagneGas Technology (Beijing) Co. Ltd. signed a letter of intent ('LOI') with Nanjing City Industrial Park to build a $29.8 million gas production center in Nanjing City within the next 24 months. The JV has also signed an LOI with Beijing Liangxiang Waste Water Treatment Plant to build the country's first sludge treatment demonstration Refinery within the next 12 months. More than 30 million tons of sludge are processed in China each year(2).
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About MagneGas Corporation (www.magnegas.com) Founded in 2007, Tampa-based MagneGas Corporation (OTCBB: MNGA) is the producer of MagneGas, a natural gas alternative and metal working fuel that can be made from industrial, municipal, agricultural and military liquid wastes following the receipt of appropriate governmental permits.
The Company's patented Plasma Arc Flow process gasifies liquid waste, creating a clean burning hydrogen based fuel that is essentially interchangeable with natural gas, but with lower green house gas emissions. MagneGas can be used for metal working, cooking, heating, powering bi fuel automobiles and more.
(1) Source: China Acetylene Industry Association)
(2) Source: China Waste Water Treatment Association)
The information contained herein includes forward-looking statements. These statements relate to future events or to our future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. You should not place undue reliance on forward-looking statements since they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond our control and which could, and likely will, materially affect actual results, levels of activity, performance or achievements. Any forward-looking statement reflects our current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to our operations, results of operations, growth strategy and liquidity. We assume no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future. The safe harbor for forward-looking statements contained in the Securities Litigation Reform Act of 1995 protects companies from liability for their forward-looking statements if they comply with the requirements of the Act. The Company is currently using new antifreeze, vegetable oil and ethylene glycol to produce fuel until proper permits to process used liquid waste have been obtained.