RenuEn walks away from St Cloud landfill gas-to-power scheme

Oct 25, 2013 - US renewable energy firm RenuEn Corp (PINK:RENU) said yesterday it would exit the development of the landfill gas-to-power project in St. Cloud city, Florida, and added it had filed a lawsuit against HSA Golden Engineering.

The company, previously known as Shaka, is suing HSA Golden for breach of contract, negligence, professional malfeasance, excessive billing, quantum merit and unjust enrichment.

According to RenuEn’s CEO Don Wood, HSA Golden has failed to take care of certain life safety issues in the initial drawings which then proved to be an obstruction for securing the needed final construction permit. Wood went on to say that the City of St. Cloud had further complicated the initiative by requesting a substantial amount of work to be completed by November 14.

Through the lawsuit against HSA Golden, the company seeks damages surpassing USD 1 million (EUR 724,000), Wood added.

RenuEn’s COO Jeff Nemes also commented on this development, saying the company is already in late-stage discussions and testing of a bigger and more profitable landfill in the same state. Nemes noted that all of the firm’s finance and equity partners had expressed their support for the new project, which is seen to be less costly.

The COO also mentioned that RenuEn’s withdrawal from the St. Cloud scheme will not have a negative impact on the company's financial growth.

(USD 1.0 = EUR 0.724)

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