Last checked at 17 Aug 2010 07:00
17 August 2010
Pursuit Dynamics PLC
("PDX" or "the Company")
New bio-fuels plant contract signed;
Bio-fuels General Managers appointed
New contract
PDX is pleased to announce the signing of a new contract for its Generation One corn-based bio-fuels business. PDX has signed a contract to install its Ethanol Reactor System ("ERS") at the Madrid, Nebraska plant of Mid America Bio Energy & Commodities, LLC ("MABE"). This plant has operated since August of 2007 at a consistent production rate of 44 million gallons per year.
The contract with MABE follows the announcement in June this year of agreements to install the ERS at ICM's Marquis Energy, LLV ("Marquis") plant and Pacific Ethanol, Inc's Boardman ("Boardman") plant. The revenue structure for the MABE plant is the same as that agreed with Marquis and Boardman. All three plants will run the ERS for up to ten weeks to quantify the operational benefits in a commercial environment. This data will be used to calculate an annual fee per gallon to be charged by PDX on a quarterly basis for the use of the ERS. Based on the extensive trials conducted at ICM's St Joe Plant the average fee is expected to be in the range of US $2 - $4 cents per gallon.
The ERS's installations at Marquis and Boardman are progressing well with operational deployment expected for mid October of this year. Baselining work (the measurement of the plants current performance against the improved performance following installation) is well under way and PDX expects the ERS equipment to be shipped to the plants in September of this year.
With the three plants at Marquis, Boardman and MABE, PDX will have approximately 250 million gallons in production per year. PDX's commercial plan envisages signing contracts with approximately 60 plants representing approximately 5 billion gallons of production over the next three years. PDX expects to announce further contractual agreements over the coming months.
Management appointments
PDX is also pleased to announce the appointment of Bill Schafer and Cary Veith as joint General Managers of PDX's bio-fuels business. This joint appointment reflects the breadth and scale of the opportunities available to PDX both for Generation One (corn-based) and Generation Two (cellulosic) bio-fuels.
Bill Schafer brings more than 30 years of energy industry experience including his most recent position as a founder and officer of Range Fuels, Inc., a leading cellulosic ethanol technology company that recently started commercial operations of its Soperton Project, the first commercial cellulosic biorefinery constructed in the USA, near Soperton, Georgia.
Cary Veith has over 30 years experience of driving technological innovations, including his most recent position leading the Research and Development Department at Myriant Technologies, LLC, a leading biotech developer and manufacturer of renewable biochemicals. Cary Veith has also held senior leadership positions at E.I. Dupont De Nemours & Co., Inc, leading its Digital Printing business unit, and at Shell Chemicals Company, as Business Manager for its Engineering Polymer Business.
Combined, Bill Schafer and Cary Veith bring the relevant experience and ability required for the successful execution of PDX's commercial strategy in the US Generation One and Generation Two markets.
Commenting on the announcement, Roel Pieper, CEO of PDX, said
"The MABE contract is another significant step in the commercial roll out of our bio-fuels strategy and demonstrates further the progress that has been made over the past year. I am also delighted to be announcing Bill and Cary's appointments. They both bring exceptional commercial and technical expertise and I am looking forward to working with them to continue to realise the business' commercial potential."
Commenting on the announcement, Bill Schafer, joint GM of PDX bio-fuels, said:
"The PDX technology provides immediate, demonstrable value for ethanol producers, as well as tremendous promise for making the next generation of biofuels technologies more competitive with fossil transportation fuels. I look forward to working with the team at PDX to drive the commercial development of these applications".
Commenting on the announcement, Cary Veith, joint GM of PDX bio-fuels, said:
"Both Generation One and Generation Two bio-fuels present extremely compelling market opportunities and I am looking forward to working with the team at PDX to help the business reach its enormous commercial potential."
- Ends -
For Further Information, please contact:
| PDX |
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| Roel Pieper, Chief Executive | Tel: +44 (0)1480 422050 |
| Donald Bell, Chief Financial Officer |
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| FD |
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| Ben Foster / Marc Cohen | Tel: +44 (0) 20 7831 3113 |
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| Cenkos Securities plc |
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| Ian Soanes / Max Hartley | Tel: +44 (0)20 7397 8924 |
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| Mirabaud Securities LLP |
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| Rory Scott | Tel: +44 (0) 20 7878 3360 |
Notes to Editors
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 now organized into four Lines of Business - Bio-fuels, Brewing and Food, Decontamination and Fire Suppression.
- PDX is headquartered in Huntingdon, UK with an office in Norwalk, Connecticut, USA.
- Further information is available at the Company's website: www.pdx.biz
- Publication quality photographs are available from FD.