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BioEnergy International and Lukoil Americas Announce 108 Million Gallon Ethanol Project in Pennsylvania; Governor Rendell Authorizes $17.4 Million State Investment

Posted on: Monday, 21 August 2006, 15:00 CDT

BioEnergy International, LLC (BioEnergy), a biotechnology company developing proprietary technologies to produce ethanol and specialty chemicals from traditional feedstocks as well as cellulose, and Lukoil Americas Corporation (Lukoil), a leading marketer of petroleum products through its downstream subsidiary, announced today the development of a 108 million gallon per year ethanol project to be located in Clearfield County, Pennsylvania. On August 17th, Governor Edward G. Rendell of Pennsylvania presented BioEnergy with $17.4 M of state investments to support the project and a pilot plant to assist in the development and commercialization of BioEnergy's technology.

BioEnergy, with Lukoil Americas, will lead the development of this project. Initially, the facility will use corn as the feedstock, which over time will be replaced by organic wastes. Lukoil Americas' downstream subsidiary has agreed to purchase all of the plant's output and will market gasoline blended with ethanol throughout its marketing network spanning 13 states in the Northeast and Mid-Atlantic regions.

"Several months ago the concept of an alliance between BioEnergy and Lukoil to develop an ethanol plant in the Northeast was explored," said Vincent DeLaurentis, President and Chief Operating Officer of Lukoil Americas. "Governor Rendell convinced us that Clearfield County is the right place and offered an economic package that helped to make this project a reality. The positive impact of this venture is far reaching. Not only will the local community benefit but our entire Lukoil marketing system of over 2000 outlets will benefit from the logistical savings of having a state of the art facility right here in the center of our thirteen state marketing area," continued DeLaurentis.

"Governor Rendell has again demonstrated his commitment to making Pennsylvania an economic leader by investing in projects like the one in Clearfield County based in Pennsylvania," said Stephen J. Gatto, Chairman and Chief Executive Officer of BioEnergy. "The State's support represents a fundamental building block that will allow us to bring a major economic contribution to the region. Long-term access to biomass materials was a key factor in selecting Clearfield County for our second project. We are fortunate to have a unique long term partnership with Lukoil Americas to purchase all of the plant's ethanol production and we are extremely excited about our alliance," added Gatto.

The companies are evaluating several sites in Clearfield County and expect to fast track selection and permitting. Subject to the timing of receipt of permits, BioEnergy anticipates that construction could commence in the first quarter of 2007 leading to the start of commercial operations in the third quarter of 2008. BioEnergy has selected Delta-T Corporation to design the plant. The Clearfield facility will utilize the same Delta-T design that BioEnergy is using for its first plant located in Lake Providence, Louisiana. The Lake Providence project is currently in the site preparation phase and full phase construction is expected to start in the fourth quarter of 2006.

BioEnergy International, LLC, www.bioenergyllc.com headquartered in Norwell, Massachusetts, is a privately held, biotechnology company focused on developing biorefineries and proprietary technologies to produce specialty chemicals and renewable fuels from both traditional feedstocks and cellulose. BioEnergy currently has two 108 million gallon per year ethanol plants under development which, over time, will utilize its proprietary technologies to produce high value specialty chemicals and renewable fuels.

Delta-T Corporation, www.deltatcorp.com headquartered in Williamsburg, VA is a privately held, design-build firm that provides alcohol plants, systems, and services to the fuel, beverage, industrial and pharmaceutical markets.

Source: Business Wire

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