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AE Biofuels Celebrates Opening of Integrated Cellulosic Ethanol Commercial Demonstration Facility

Posted on: Monday, 11 August 2008, 12:01 CDT

AE Biofuels Inc., (OTCBB:AEBF), a global vertically integrated biofuels company, today celebrated the grand opening of its integrated cellulosic ethanol commercial demonstration facility in Butte, Montana. One of the first such cellulosic demonstration plants in the United States, and the first to integrate the use of both cellulose and starch based feedstocks, the 9,000 square foot demonstration facility is now operational.

The plant uses proven, patent-pending Ambient Temperature Enzymes for converting cellulose and starch to fermentable sugars to optimize process conditions for multiple feedstocks. Non-food ethanol feedstocks used at the facility include switch grass, grass seed straw, small grain straw, sugarcane bagasse, and corn stalks either alone or in combination with a variety of traditional starch and sugar sources such as corn, wheat, barley, and sugarcane. By utilizing multiple feedstocks, AE Biofuels(TM) can produce ethanol through a cellulose only or cellulose / starch combination, thus reducing the risk of commodity availability and pricing uncertainty.

U.S. Senator Max Baucus of Montana attended the opening ceremony and noted, "One of my top priorities is to help boost domestic energy production here in Montana so we can lessen our dependence on foreign oil and energy sources. This cellulosic biofuels plant is a step in the right direction toward energy independence and will also help create good-paying jobs. I'm especially proud that Montana can help pave the way and be a leader in boosting domestic energy production."

Montana Governor Brian Schweitzer, who also attended the opening ceremony said, "Montana is a true leader for new energy solutions. We're proud that AE Biofuels' groundbreaking technology was developed here in Montana. It is exciting to see this company working on a way to reduce our dependence on foreign energy supplies - American energy produced by Montana workers."

"The Department of Energy is committed to developing clean, renewable, and sustainable biofuels that reduce greenhouse gas emissions and increase America's energy security. We must have a broad range of technologies, including cellulosic biofuels that use non-food based feedstocks, to address our energy challenges," said Paul Dickerson, Chief Operating Officer of the U.S. Department of Energy's Office of Energy Efficiency and Renewable Energy who attended the opening.

AE Biofuels' commercial ethanol demonstration plant intends to address challenges currently facing domestic ethanol production. The company's Ambient Temperature Enzyme technology significantly reduces the consumption of energy and water in the production of ethanol. In addition, AE Biofuels' technology allows existing corn ethanol plants to reduce the use of corn or expand by using non-food, cellulosic feedstocks.

AE Biofuels Chairman and CEO Eric McAfee said, "We believe the powerful combination of our Ambient Temperature Enzyme technology, access to multiple feedstocks, and reduced energy and water consumption place us at the very leading edge of next-generation ethanol. Combined with our biodiesel production, AE Biofuels is well positioned to lead the vertical integration of the biofuels industry."

About The Technology

In 2007, AE Biofuels acquired enzyme technology from Renewable Technology Corporation and formed its ethanol technology subsidiary, Energy Enzymes. The company's enzyme technology is designed to reduce operating and capital costs for both cellulosic ethanol and starch ethanol plants and provides a platform to integrate the two processes. AE Biofuels utilizes patent-pending ambient temperature enzymes to eliminate the up-front "cooking" process that occurs in traditional starch ethanol production. Eliminating the initial cooking and cooling process significantly reduces energy and water consumption.

In addition, the cellulose enzyme technology has proven successful in converting multiple lignocellulosic feedstocks, such as switch grass, wheat grass, corn, and corn stover, the remaining corn "stalks" that are not currently being utilized as biomass, to ethanol. These low-cost, multi-activity enzymes are expected to reduce capital and operating expenditures for cellulose ethanol production. The company has three patents pending covering the enzymes and process for integrating cellulose and starch.

About AE Biofuels

AE Biofuels, Inc. is a global vertically integrated biofuels company based in Cupertino, California, developing sustainable solutions to address the world's renewable energy needs.

The company is commercializing its patent-pending next-generation cellulosic ethanol technology that enables the production of biofuels from both non-food and traditional feedstocks. AE Biofuels owns or has optioned multiple permitted ethanol plant sites in the United States. Its Universal Biofuels subsidiary owns a 50 million gallon per year biodiesel facility on the east coast of India, and is planning a 75 million gallon per year biodiesel facility in Argentina. For additional information about AE Biofuels, please visit: www.aebiofuels.com.

Source: Business Wire

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