New Generation Biofuels Signs Letter of Intent with Eden Renewable EnergyCompany to License its Biofuel Technology in certain Provinces in Canada
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COLUMBIA, Md., Sept. 10 /PRNewswire-FirstCall/ -- Renewable fuels provider New Generation Biofuels Holdings, Inc. (Nasdaq: NGBF) today announced that it has signed a Letter of Intent (LOI) with Eden Renewable Energy (EDEN) of New York, NY. Under this LOI EDEN, would i.) License product formulations, manufacturing technology and know-how from NGBF with the intent of constructing a biofuel manufacturing facility in Atlantic Canada, and ii.) earn sales commissions on direct sales of NGBF products within the region.
Under the terms of the LOI, EDEN will be the granted the exclusive right to produce and market to the Canadian provinces of Newfoundland & Labrador, Nova Scotia, New Brunswick, and Prince Edward Island. EDEN will pay NGBF a licensing fee of $0.10 per gallon of biofuel produced and sold. These terms are subject to product testing and manufacturing milestones which include that upon final completion and commissioning of a manufacturing facility of at least 20 million gallons of annual production capacity, EDEN shall be expected to generate minimum annual sales of 5 million gallons in the first year, 7 million gallons in the second year and 10 million gallons in the third year following the completion. Thereafter the minimum production quantity is expected to increase annually by 1.5 million gallons per year, up to 15 million gallons per year of annual sales
"We look forward to working with EDEN, a progressive renewable energy company and providing Canadian customers an environmentally sound biofuel," said New Generation Biofuels' Chief Executive Officer, Cary Claiborne. "In addition to the expected revenue contribution for New Generation Biofuels, the successful implementation of the EDEN project using our technology will provide us with what could be our first international technology licensing agreement, which is right in line with our business model vision."
"We are excited to partner with NGBF and obtain the exclusive license for their renewable biofuel for eastern Canada," said Peter Williams of EDEN Renewable Energy. "We look forward to bringing a renewable energy solution to customer's in this region."
About Eden Renewable Energy, LLC
EDEN is a newly formed entity, created for the purpose of developing and exploiting opportunities in the emerging alternative energy sector. EDEN expects to achieve this through licensing of innovative, but proven technologies. The LOI with NGBF will be the company's first such agreement.
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.
SOURCE New Generation Biofuels Holdings, Inc.
