Last checked at 22 Jun 2011 07:00
22 June 2011
Pursuit Dynamics PLC
("PDX" or "the Company")
Three new biofuels plants signed
PDX (AIM:PDX) is pleased to announce today the signing of an agreement with Advanced BioEnergy, LLC ("ABE") to install the Ethanol Reactor System ("ERS") at its three plants in South Dakota and Nebraska, totalling 195 million US Gallons per annum ("Gpa").
This agreement enables PDX to install the ERS and determine its performance in these plants. Subject to this satisfactory operational validation, the next stage of the process will be the agreement of commercial terms and the commencement of revenues.
Today's agreement follows two other significant biofuels agreements announced at the interim results on 14 June 2011:
·; Marquis Energy LLC ("Marquis"), one of the largest ethanol plants in the USA with a production rate of 135 million Gpa, agreed commercial terms with PDX over its operation of the ERS at its plant at Hennepin, IL, USA. The Marquis plant ERS was installed in March this year.
·; BioFuel Energy, LLC ("BFE") signed an agreement to install the ERS at two of its plants in Nebraska and Minnesota. Each plant has a capacity of 115 million Gpa.
Altogether, the signing of today's agreement will bring the total number of plants installed or contracted to be installed to 13, with a total capacity of 914 million Gpa. PDX reiterates the guidance given in its interim results statement on 14 June 2011 that by the end of the current financial year it expects to have an installed base of more than 500 million Gpa and over two billion Gpa by the end of financial year 2012.
The recent agreements with ABE and BFE, alongside that with Front Range Energy LLC announced on 25 May 2011, are part of the second group of plants with which installation agreements have been signed. Group two plants are expected to generate slightly higher revenues than group one plants, equating to a 30% share of the benefits. PDX maintains its guidance of US$ 2c to 4c per gallon as the overall average share of the benefits.
PDX expects that it will typically take approximately two to three months after an ERS is installed until it moves to the next stage where commercial terms are agreed and the plant starts to generate revenues. Taking this into account, PDX expects the actual annual run-rate revenues from its Biofuels Line of Business to be substantial and, when combined with its modest expense base, a major contributor to PDX's overall profitability. PDX therefore remains committed to its outlook of becoming cash flow positive in the first half of financial year 2012.
See the table in the notes to editors for a detailed breakdown of all the plants with which PDX has signed agreements.
Commenting on the announcement, Roel Pieper, CEO of PDX said:
"The signing of our agreement with Advanced BioEnergy, alongside the recent agreements with BioFuel Energy, Marquis Energy and Front Range Energy LLC, demonstrates clearly the increasing industry acceptance and growing momentum of the PDX technology in the corn ethanol industry. With each plant that we sign-up, we continue to improve the period from installation to revenues per plant, as we streamline the process and produce more effective efficiency calculations to determine the shared benefits. We are on track to meet our biofuels installed capacity guidance for the full year".
- Ends -
For Further Information, please contact:
Pursuit Dynamics PLC | |
Roel Pieper, CEO | Tel: +44 (0)1480 422050 |
Richard Webster, CFO | |
Financial Dynamics | |
Marc Cohen | Tel: +44 (0) 20 7831 3113
|
Cenkos Securities | |
Ian Soanes Max Hartley | Tel: +44 (0)20 7397 8924 |
Mirabaud Securities | |
Rory Scott | Tel: +44 (0) 20 7878 3360 |
Notes to Editors:
Biofuels agreements
Company | No. of plants | Gpa (m) | Status
|
Pacific Ethanol Columbia LLC
|
1 |
50 |
In commercial operation as of 18 March 2011
|
Marquis Energy LLC
|
1 |
135 |
In commercial operation as of 14 June 2011
|
Mid America Bio Energy & Commodities LLC
|
1 |
46 |
ERS installed, awaiting commencement of commercial operation |
Red Trail Energy LLC
|
1 |
50 |
ERS installation in progress
|
Front Range Energy LLC
|
1 |
50 |
ERS installation in progress |
Pacific Ethanol Magic Valley, Stockton and Madera
|
3 |
158 |
ERS installation in planning stages |
BioFuel Energy LLC |
2 |
230 |
ERS installation in planning stages
|
Advanced BioEnergy
|
3 |
195 |
ERS installation in planning stages |
Total
|
13 |
914 |
About PDX
- PDX (AIM: PDX) owns and commercialises the PDX Atomiser and Reactor
technologies that enable significant reductions in energy usage, process acceleration and result enhancement for a wide range of industrial processes and applications.
- The PDX business model is currently organised into five Lines of Business
Biofuels; Brewing, Food and Beverages; Public Health and Decontamination;
Industrial Licensing; Water.
- PDX is headquartered in Huntingdon with an office in London,
Schaffhausen, Denver and Connecticut.
- Further information is available at the Company's website: www.pdx.biz
- Publication quality photographs are available from FD