Alliance BioEnergy Plus, Inc. Subsidiary AMG Energy Group Secures Sublicense Agreement for CTS Technology
Agreement with Earth's Renewable Energy, LLC will Allow Newly Built Plant in Bakersfield, CA to Process 250 Tons of Biomass per Day to Create C5/C6 Sugar Mix Needed for High Value Bio-Products; Creates New Revenue Stream for Company
Alliance BioEnergy Plus, Inc. (OTCQB: ALLM) (the "Company") announced today that its wholly owned subsidiary, AMG Energy Group, has entered into a sublicensing agreement with Earth's Renewable Energy, LLC of Newport Beach, CA. The sublicense agreement permits Earth's Renewable Energy to use the Company's patented cellulose to sugar (CTS) technology at a soon-to-be-built plant in Bakersfield, CA.
The single process train will be capable of processing 250 tons per day of biomass, such as almond and pistachio trees and their hulls, which will be supplied under contract by a $4 billion private agricultural conglomerate in California. The plant also has an offtake agreement with Chem-Energy Corporation, who will utilize the C5/C6 sugar mix and pure lignin to create fine chemicals and other high value bio-products. As additional feedstocks become available, the plant will expand processing to 1,000 tons per day.
The sublicense fee paid to AMG Energy Group is $1.25M plus 5% of ongoing gross revenue derived from the CTS process. The cash portion of the fee will be paid in installments, with the initial payment made within the next 30 days, providing the Company with an immediate capital infusion and a longer-term revenue source.
"We are excited to take this step forward and to secure a sublicensing agreement that will generate both near and long term revenue for our Company, while further validating our technology as the industry standard for the economic production of energy efficient bio-products," said Daniel de Liege, CEO, Alliance BioEnergy Plus. "We look forward to delivering the technology once their plant is ready and to work with the team at Earth's Renewable Energy to ramp up processing and to deliver high quality materials to our commercialization partners."
"We are pleased to be partnering with AMG Energy and Alliance for the production of more environmentally friendly bio-products," said Katherine Fabris, President of Earth's Renewable Energy. "We identified their technology as the best in the industry from both a cost and production perspective, and look forward to a productive long-term relationship."
Funding for the soon-to-be-built plant in Bakersfield will be provided by Twin Rivers Group LLC, a diversified business development firm with offices in Texas and Kansas and a strong concentration in the renewable energy space. Twin Rivers Group has teamed up with Earth's Renewable Energy to develop multiple processing facilities deploying a patented proprietary processing technology under a licensing agreement with AMG Energy Group. Once the Bakersfield plant is operational, there are plans to build three additional plants and further expand processing.
The Company has done extensive testing on the almond and pistachio feedstocks at its Ek Laboratories in Longwood, Florida. Initial tests show that this feedstock performs better than expected and converts quickly and easily in the CTS process.
While licensing is a part of the Alliance business plan and brings the Company immediate revenue, Alliance continues to work toward closing on its own bioethanol plant through subsidiary Alliance Bio-Products, Inc., and expects to be operational in its retrofitted facility by mid 2018.
Alliance BioEnergy +, Inc. ("ALLM") is a publicly traded company focusing on the commercialization and licensing of a patented cellulose conversion technology that it controls through a master license agreement with the University of Central Florida, via its affiliate Carbolosic, LLC. Carbolosic holds the exclusive, worldwide license to four (4) issued patents and fourteen (14) filed and pending patents revolving around the core CTS (cellulose to sugar) technology. ALLM also holds the exclusive CTS rights to North America (Canada, US, and Mexico) and Africa.
The CTS process is the only known patented, dry mechanical process that can convert virtually any cellulose material into sugars and other products in a matter of minutes with no liquid acids, no applied heat, pressure or hazardous materials of any kind. The CTS process when used in the production of Ethanol is clean, less expensive to build and operate than traditional ethanol plants or other cellulose ethanol technologies and is completely environmentally friendly.
Information in this document constitute forward-looking statements or statements which may be deemed or construed to be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The risks, uncertainties and other factors are more fully discussed in the Company's filings with the U.S. Securities and Exchange Commission. All forward-looking statements attributable to Alliance BioEnergy Plus, Inc herein are expressly qualified in their entirety by the above-mentioned cautionary statement. Alliance BioEnergy Plus, Inc. disclaims any obligation to update forward-looking statements contained in this estimate, except as may be required by law.
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