Last checked at 2 Oct 2008 07:00
2 October 2008
Pursuit Dynamics PLC
("PDX", "Pursuit Dynamics" or "the Company")
Letter Of Intent Signed With Babcock & Brown
PDX ERT to be Installed at Four Midwestern Ethanol Plants
Pursuit Dynamics plc (AIM: PDX), the developer and exploiter of the PDX platform technology, is pleased to announce it has received, via its US subsidiary Pursuit Dynamics Inc., a signed Letter Of Intent ('LOI') with agreed commercial terms from Babcock and Brown Biofuels Inc. and BEI US Inc. (subsidiaries of Babcock & Brown Ltd. - ASX: BNB), leading US-based producers of ethanol, to install Pursuit Dynamics' proprietary, yield improving PDX Ethanol Reactor Tower ('ERT') at its four ethanol plants located in four separate Midwestern States in the US.
The four plants, which are owned by companies in which Babcock & Brown Ltd. is a majority shareholder, are Marquis Energy LLC in Hennepin, Illinois (110 Million Gallons per Year - 'MGY'); Castle Rock Renewable Fuels LLC in Necedah, Wisconsin (55 MGY); Iroquois Bio-Energy Company LLC in Rensselaer, Indiana (45 MGY); and Denco LLC in Morris, Minnesota (25 MGY). They currently represent a total ethanol production capacity of 235 MGY.
Under the LOI, each plant will be subject to an individual contract which will follow the PDX total benefit royalty model. As a result, monthly royalties are payable based upon a percentage of the overall benefit to the customer and are primarily derived from yield improvements.
In addition, the four plants, which are of a differing technical design and capacity, will act in partnership with Pursuit Dynamics by serving as Midwestern demonstration plants for future marketing and PR initiatives.
Commenting on the agreement, John Heathcote, CEO of Pursuit Dynamics said: "The signing of this LOI represents an important commercial development for Pursuit Dynamics and its ERT technology.
"We have been working closely with Babcock and Brown over the past 12 months to demonstrate the advantages our technology provides and, as we commence aggressive penetration of the US ethanol market from our Fallbrook, California facility, the addition of Babcock and Brown as a customer represents an important milestone.
"Babcock and Brown will not only be a valued customer for PDX, but will also be a valuable partner as we build a platform to bring to the US Ethanol Industry a potentially game changing technology."
Commenting on the agreement, Mark Marquis, President of Babcock & Brown Biofuels Inc. said: "The potential efficiency gains the PDX system represents for our plants should lower our overall feedstock cost. The PDX technology enhancement will improve our plant production margin while improving economics for
consumers using clean burning high octane ethanol fuel."
For further information, please contact:
Pursuit Dynamics PLC
John Heathcote, Chief Executive Tel: +44 (0)1480 422050
Redleaf Communications
Emma Kane / Paul Dulieu Tel: +44 (0)20 7822 0200
Cenkos Securities plc
Ivonne Cantu / Julian Morse Tel: +44 (0)20 7397 8900
Notes to Editors
Pursuit Dynamics PLC (AIM: PDX) owns and commercialises the PDX® fluid processing reactor whose benefits include significant reductions in energy usage, process acceleration and result in efficiency enhancements for industries such as Food & Drink, Brewing, Fire Suppression, Decontamination and Bio Ethanol production.
Pursuit Dynamics is headquartered in Huntingdon, UK and has an office in Norwalk, Connecticut, USA. Pursuit Processing Equipment Limited, the processing equipment division of Pursuit Dynamics, operates from its own facility in Brooklands, Surrey, UK.
Further information is available at the Company's website: www.pursuitdynamics.com
Publication quality photographs are available from Redleaf Communications
About Babcock & Brown
Babcock & Brown is an international investment and specialised fund and asset management group with longstanding capabilities in structured finance and the creation, syndication and management of asset and cash flow-based investments. Babcock & Brown was founded in 1977 and is listed on the Australian Securities Exchange.
Babcock & Brown operates from 33 offices across Australia, North America, Europe, Asia, United Arab Emirates and Africa and has in excess of 1,400 employees worldwide. Babcock & Brown has four operating divisions including real estate, infrastructure, operating leasing, corporate and structured finance. The company has established a funds management platform across the operating divisions that has resulted in the creation of a number of focused investment vehicles in areas including real estate, renewable energy and infrastructure.
For further information about Babcock & Brown please see their website: www.babcockbrown.com