Mantra Venture Group Ltd. ('Mantra', OTCBB: MVTG, FSE: 5MV) is pleased to announce that it has just signed a Memorandum of Understanding (MOU) with Bluebird Co. Ltd. (Bluebird), an environmental engineering company based out of Seoul, Korea. Under the terms of the MOU, Bluebird will become an integral partner in the development, deployment and eventual commercialization of Mantra's Electro-reduction of Carbon Dioxide Technology in various territories within Asia.
As outlined in the MOU, the partnership will progress through three transitional phases. Under Phase 1, Mantra will deliver a 1kg-per day ERC demonstration unit to Bluebird in Korea by November 2009, after which both companies will collaboratively develop and improve upon the current technology. Phase 2 of the partnership, commencing in January 2010, will see the development and construction of the first commercial scale ERC reactor- capable of processing 1 ton of CO2 per day. Upon successful completion of Phases 1 and 2, Mantra and Bluebird will continue on to Phase 3 - the construction of a fully operational ERC unit with a 100-tonne per day capacity. Phase 3 is currently scheduled for 2012.
Mantra's research and development costs for Phases 1 and 2 of this project, estimated at $3.5 Million CAD, will be funded by Bluebird throughout the course of the partnership. In return, Bluebird will become Mantra's exclusive licensee, distributor, and manufacturing partner in Korea and various other territories within Asia (subject to royalty payments and compliance with key performance criteria).
Larry Kristof, President and CEO of Mantra, notes 'This MOU signifies the beginning of a burgeoning partnership in which both parties stand to benefit greatly. Not only does Bluebird Co. Ltd have a wealth of experience in environmental engineering, they have the resources and market exposure required to generate significant licensing revenue upon commercialization. Bluebird's contribution will lead to the expedited development of a more robust and economical ERC technology as well as earlier commercialization and revenue generation. Given South Korea's recent proclamation that it will invest $38 Billion in clean tech over the next four years, this partnership represents a very timely initiative for Bluebird. Mantra looks forward capitalizing on the opportunity with Bluebird.'
To facilitate the relationship, both Mantra and Bluebird anticipate establishing offices in the other party's respective countries by May 2009. By May 31, 2009 and upon the opening of Mantra's Korean office in Seoul, the parties plan on entering into a definitive agreement governing their ongoing cooperation.
About Bluebird Co., Ltd.
Founded in 1998, Bluebird Co., Ltd. strives to protect the environment through its engineering capabilities. With design and construction of facilities for air pollution prevention being its main business lines, Bluebird plays a leading role in improving the air quality both in Korea and abroad. Bluebird's current environmental technologies include: De-Dioxin System, De-NOx (SCR) System, De-SOx(FGD) System, Electrostatic Precipitator, De-VOC System and Urea solution manufacturing. Bluebird has many large international customers, including Samsung Corning, an electronics producer to whom it supplies with 1,800-2,400 tons of Urea Solution per year. The company is currently seeking opportunistic sectors for continued growth, including Carbon Capture and Storage.
For more information on Bluebird Co., Ltd., please visit their website: http://www.blbird.co.kr/
The ERC process, 'the Electrochemical Reduction of Carbon Dioxide', combines captured carbon dioxide with water to produce high value materials, such as formic acid and formate salts, which are conventionally obtained from the thermochemical processing of Fossil Fuels. However, ERC has an advantage over the established thermochemical methods for converting carbon dioxide to liquid fuels.
While thermochemical reactions must be driven at relatively high temperatures that are normally obtained by burning fossil fuels, ERC operates at near ambient conditions and is driven by electric energy that can be taken from an electric power grid supplied by hydro, wind, solar or nuclear energy (forms of renewable energy).
Mantra, through its group of sustainable energy, carbon reduction and consumer product subsidiaries, is active in the green technology marketplace with an innovative, multi-faceted approach focused on profitability through sustainability. By aggressively seeking out new technologies and innovating solutions for a cleaner earth for everyone, Mantra intends to provide a highly profitable and environmentally responsible investment for its shareholders.
Mantra is a public company quoted on the OTC BB under the symbol MVTG and on the Frankfurt Stock Exchange under the symbol 5MV.
Except for the historical information contained herein, the matters discussed in this press release are forward-looking statements. Actual results may differ materially from those described in forward-looking statements and are subject to risks and uncertainties. See Mantra Venture Group's filings with the Securities and Exchange Commission which identify specific factors that may cause actual results or events to differ materially from those described in the forward-looking statements.
SOURCE Mantra Venture Group Ltd.