O2Diesel Enters Into a Licensing Agreement With KL Process Design Group to Develop Next Generation Cellulosic Ethanol Production
March 13 2008 - 7:06AM
Marketwired
NEWARK, DE today announced that its wholly owned subsidiary,
O2Diesel Europe, Plc, has signed a Technology License and Services
Agreement with KL Process Design Group (KL) to develop the next
generation of ethanol production known as Cellulosed-Based Ethanol
(CBE). The agreement secures O2Diesel's rights to expand KL's
cellulosic to ethanol fuel production technology in Europe, India,
Russia and other rapidly developing global markets.
KL announced the start up of its cellulosic ethanol plant in
August 2007. It is the first commercial small scale wood waste
facility in the USA, which is a dramatic advancement that positions
them at the forefront of the commercialization of second generation
renewable fuels. The plant, located in Wyoming, was engineered and
constructed by KL Process Design Group, who continues to operate it
as well. This significant milestone was achieved as the result of
six years of development efforts between KL and the South Dakota
School of Mines and Technology and the commitment of KL's
management.
Alan Rae, CEO of O2Diesel Corporation, said, "As part of our
strategy to access competitively priced ethanol in all O2Diesel?
markets, we have been investigating and evaluating multiple
opportunities to acquire leading edge ethanol production facilities
or projects. In the last 12 months we have seen well publicized
government initiatives to dramatically increase the percentage of
biofuels from second generation processes. In Europe, the focus is
on new CO2 reduction directives and regulations, which we believe
will lead to far tighter scrutiny of all biofuel origins and
production methods. These actions will, in our opinion, provide a
significant advantage for O2Diesel? when blended with ethanol
produced from second generation technologies. This is especially
true as these renewable fuel directives take effect, since the
additional demand created cannot be met by the current technologies
which use increasingly more expensive agriculturally based
products. We believe KL has developed a commercially ready and
environmentally friendly process and has a business model that can
be easily replicated, which will provide the opportunity for rapid,
wide-scale distribution of affordable fuel grade ethanol on a
carbon positive basis. Additionally, the KL process provides the
potential for multiple natural waste feedstocks, which supports
global efforts to move renewable fuel production away from
traditional agricultural feedstocks. Access to competitively priced
ethanol from second generation production will further enhance the
environmental benefits of O2Diesel? as we expand our European and
other markets."
Mr. Rae continued, "It is our intention to develop multiple
strategically placed cellulosic ethanol production plants through
joint ventures and we have already had early stage discussions in
several key markets. Initially, we will seek partners in markets
that face the most immediate regulatory requirements, such as the
countries of the European Union. In these markets, O2Diesel?
blended with cellulosic ethanol will provide a significant
advantage to regulators and diesel fuel users looking to meet the
requirements."
"We are very happy to be working with O2Diesel and their
partners to take our technology and process into other advanced
markets," said Randy Kramer, President and CEO of KL Process Design
Group. "We hope our initial plant in Upton, Wyoming will be the
first of many and we see our agreement with O2Diesel as an
important global extension of our commercialization program here in
the US. We have worked with O2Diesel for over 18 months supporting
their clean school bus program and having seen the benefits in the
US, are hoping to see much more ethanol coming from the KL CBE
process in O2Diesel's clean burning fuel on a global basis."
KL has developed proprietary technologies and newly developed
enzymes to extract fuel grade ethanol from cellulosic materials
such as wood waste and other non-food feedstocks and waste
materials. Its experience with enzymes and ethanol production
provide the platform to incorporate these proven technologies that
have been utilized for years in other industries with this new
process. Through these processes, KL is able to release fermentable
sugars hidden within the wood without the use of environmentally
unfriendly acids. KL projects that its cellulosic technology,
coupled with new applied design concepts, will allow the plants to
be built to match the amount and type of feed stock available near
large cities, further lessening the fuel's carbon foot print and
eliminating ethanol transportation issues. KL's advanced biofuels
plants will also produce excess steam heat and/or electricity that
can provide additional power sources for local municipalities or
complement biofuel plants and manufacturing facilities.
Additional information regarding the terms of the license can be
located in O2Diesel's Form 8-K filed today with the Securities and
Exchange Commission.
More About KL Process Design Group
KL Process Design Group, LLC is a privately held company located
in Rapid City, SD which specializes in bio-fuels project
development, engineering, construction, and plant management with
an emphasis on ethanol made from cellulose and grain feedstock. For
more information visit www.klprocess.com
More About O2Diesel: The Company and Its Fuel Technology
O2Diesel Corporation (AMEX: OTD) and its US subsidiary O2Diesel,
Inc., is a pioneer in the commercial development of a
cleaner-burning diesel fuel alternative that provides exceptional
performance and environmental qualities for centrally fueled fleets
and off-road equipment of all kinds. Engineered and designed for
universal application, O2Diesel? is an ethanol-diesel blend that
substantially reduces harmful emissions without sacrificing power
and performance. Extensive independent and government-recognized
laboratory and in-use field tests have demonstrated the
effectiveness of O2Diesel? -- the introduction of this
cost-effective, cleaner-burning diesel fuel is now underway in the
United States and other global markets. For more information please
refer to www.o2diesel.com.
Forward Looking Statements
"Safe Harbor" Statement under the Private Securities Litigation
Reform Act of 1995: Statements in this press release regarding
O2Diesel Corporation's business which are not historical facts are
'forward-looking statements' that involve risks and uncertainties.
Forward-looking statements are subject to a variety of risks and
uncertainties which could cause actual events or results to differ
from those reflected in the forward-looking statements, including,
without limitation, the failure to obtain adequate financing on a
timely basis and other risks and uncertainties. Actual results
could differ materially from those projected in the forward-looking
statements, as a result of either the matters set forth or
incorporated in this report generally or certain economic and
business factors, some of which may be beyond the control of
O2Diesel. These factors include adverse economic conditions, entry
of new and stronger competitors, inadequate capital, unexpected
costs, failure to gain product approval in the United States or
foreign countries for the commercialization and distribution of our
products, failure to capitalize upon access to new markets and
failure in obtaining the quality and quantity of ethanol necessary
to produce our product at competitive prices. O2Diesel disclaims
any obligation subsequently to revise any forward-looking
statements to reflect events or circumstances after the date of
such statements or to reflect the occurrence of anticipated or
unanticipated events. "O2Diesel" and "CityHome" are trademarks of
O2Diesel Corporation.
Contact: O2Diesel Corporation Alan Rae +1 (302) 266 6000 For KL
Process Design Group Tom Martin Media Relations Manager (605)
718.0372 x16 Tom Slunecka Vice President - Business Development
(402) 575-5855
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