Methes
Energies, a renewable energy company with a variety of products and services
available to biodiesel fuel producers, has signed a letter of intent (LOI) to
acquire the assets of OTC Energy Technologies (OTC), including all of OTC’s
technologies, potential clients, and knowledge regarding the conversion of
certain types of biomass into a chemical quality syngas, which can be converted
into renewable alcohols such as ethanol and methanol, and renewable
hydrocarbons such as jet fuel and gasoline.
The
acquisition is expected to strengthen Methes’ opportunity to compete in the
multi-billion dollar renewable fuels market, and also creates an entrance for
the company into the multi-hundred billion dollar general transportation fuels
market.
Methes’
goal is to make small-size and medium-size processors available to clients that
do not have access to the capital or biomass needed to start-up and operate
large-scale facilities. The company believes that OTC’s assets will provide an
ideal solution for this situation and enhance its current technology portfolio.
“We
are first and foremost a technology company, and we are proud to be adding to
our portfolio this way. We are excited about the opportunity to offer a smaller
solution to people that don’t have the $100s of millions typically associated
which such projects,” John Loewen, vice president of operations at Methes
Energies, stated in the news release. “What we’ve seen at their small-scale
facility is truly amazing, and our goal is to quickly package and deploy
turn-key solutions similar to our biodiesel processors. We look forward to the
completion of this transaction which we expect will bring substantial revenues
and in turn create significant value for our shareholders.”
Paul
Goodrow, president of OTC, detailed mutual interest of both companies.
“What
attracted us to Methes was their proven ability to turn innovative process
designs into working, efficient production plants,” said Goodrow. “We believe
that the OTC technology has the potential to be a low-cost producer of renewable
and alternative fuels. And we believe that smaller, modular plants and low
costs are not mutually exclusive. We anticipate that our hydrocarbon fuels will
be cost competitive with, and will prove to be an acceptable replacement for
crude oil derived transportation fuels. We look forward to working with Methes
to rollout what we think will be a game changing business model.”
Additional
terms of the transaction were not provided.
For
more information, visit www.methes.com
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