New Generation Biofuels Signs Letter Of Intent With Puerto Rico-based Ace Biofuels
COLUMBIA, Md., Oct. 12 /PRNewswire-FirstCall/ — Renewable fuels provider New Generation Biofuels Holdings, Inc. (Nasdaq: NGBF) (“NGBF” or the “Company”) today announced that it has signed a Letter Of Intent (LOI) with Ace Biofuels of San Juan, Puerto Rico. Under this LOI, Ace Biofuels would license product formulations, manufacturing technology and know-how from NGBF with the intent of constructing a biofuel manufacturing facility and marketing NGBF biofuel in Puerto Rico.
Under the terms of the LOI, Ace Biofuels will produce and market NGBF’s Biofuel to the manufacturing sector in Puerto Rico, which has annual market consumption in excess of 30 million gallons according to a market assessment study by the University of Puerto Rico. Ace Biofuels will pay NGBF a licensing fee per gallon of biofuel produced and sold.
“The whole of Puerto Rico is in the process of exploring a number of alternative and renewable energy options to decrease dependence on fossil fuels and help to decrease the impact that global warming could have on the island,” said Edgardo Fabregas Rios President of Ace Biofuels. “With NGBF’s unique biofuel technology we can help not only our customers, but our country as well.”
Puerto Rico sustains over 2,300 diversified industrial plants – including many leading Fortune 500 multinationals – that produce everything from apparel and computer motherboards to pharmaceuticals and medical devices. Initial targets for the biofuel are boiler applications in locations with no access to natural gas and limited opportunity beyond fossil fuels to switch to a clean renewable energy source.
“We have been working with Ace for some time now and see this opportunity as a key to opening up new markets and growing the licensing side of our business,” said New Generation Biofuels’ Chief Executive Officer, Cary Claiborne. Eng. Fabregas Rios currently has established businesses and contacts in the manufacturing sector and we are pleased to have him as our partner.”
The terms of the LOI are subject to successful completion of a biofuel test in a Cleaver-Brooks boiler at a well known, reputable manufacturing site in Puerto Rico and the completion of technical due diligence by November 30th, 2009. NGBF will then jointly manage the project to start producing the biofuel in Puerto Rico sometime in the first half of 2010.
About ACE Biofuels
Ace Biofuels is a subsidiary of Ace Engineering & Management, PSC.
About New Generation Biofuels, Holdings, Inc.
New Generation Biofuels is a renewable fuels provider. New Generation Biofuels holds an exclusive license for North America, Central America and the Caribbean to commercialize proprietary technology to manufacture alternative biofuels from plant oils and animal fats that it markets as a new class of biofuel for power generation, commercial and industrial heating and marine use. The Company believes that its proprietary biofuel can provide a lower cost, renewable alternative energy source with significantly lower emissions than traditional fuels. New Generation Biofuels’ business model calls for establishing direct sales from manufacturing plants that it may purchase or build and sublicensing its technology to qualified licensees.
Forward Looking Statements
This news release contains forward-looking statements. These forward-looking statements concern our operations, prospects, plans, economic performance and financial condition and are based largely on our current beliefs and expectations. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from any future results expressed or implied by such forward-looking statements The risks and uncertainties related to our business include all the risks attendant a development stage business in the volatile energy industry, including, without limitation, the risks set forth under the caption “Risk Factors” in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2008.
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SOURCE New Generation Biofuels Holdings, Inc.