|By Marketwire .||
|August 10, 2012 12:40 PM EDT||
MIAMI, FL -- (Marketwire) -- 08/10/12 -- BioNitrogen Corporation (PINKSHEETS: BION), a cleantech company that utilizes proprietary technology to build environmentally-friendly plants that convert biomass into urea fertilizer, announced today it has signed an agreement to purchase biomass from a 40-acre parcel of land in Hardee County, Florida. The biomass consists of tree trimmings, agricultural waste and woodchips suitable for use as feedstock in the production of urea fertilizer. The land is part of a larger parcel on which BioNitrogen plans to construct a biomass-to-urea production facility.
The land is currently owned by Larry Davis, a partner in Florida Fertilizer Company, and is being leased to BioNitrogen for a period of two years with an automatic two-year renewal provision.
Florida is one of the largest producers of tree trimmings as well as other sustainable biomass, a feedstock that is year-round and not subject to severe declines in production due to the changes in weather.
In addition, the rapid and sustained development in Florida has positively impacted the process of producing sustainable sources of biomass. The growth in the number of golf courses as well as both residential and commercial developments has increased the amount of land producing biomass. The amount of biomass has grown to the point where companies disposing of biomass are paying large "tipping fees" to collection centers where the trimmings are disposed. BioNitrogen intends to collect tipping fees for the disposal of the waste.
Carlos A. Contreras, President & CEO of BioNitrogen, stated, "The biomass, or plant feedstock, is a material cost in our plant business model. In the planned operation being set up in Hardee County we can source the biomass and generate revenues at the same time, on a year-round basis."
Earlier this year, BioNitrogen announced that it had signed a Letter of Intent to construct a fertilizer plant in West Texas. Due to a reassessment of both the availability of appropriate biomass and the potential market for urea in the region, the company has decided to postpone any expansion in West Texas and focus its resources and capital in Hardee County, Florida. As noted above, Hardee County has both a large supply of wood-based biomass and a large potential market for urea, making it an ideal location to build BioNitrogen's first plant. At some point in the future, the company may review the feasibility of a plant in West Texas.
About BioNitrogen Corporation
BioNitrogen Corp. (PINKSHEETS: BION) is a cleantech company that utilizes proprietary technology to build environmentally-friendly plants that convert biomass into urea fertilizer. Our mission is to provide safe, cost effective, green solutions that are economically beneficial in locations where biomass is produced and urea is consumed. Additional information can be found at www.BioNitrogen.com.
Safe Harbor Statement
The forward-looking statements contained in this document involve risks and uncertainties that may affect the Company's operations, markets, products, services, prices and other factors as discussed in filings with the Securities and Exchange Commission. These risks and uncertainties include, but are not limited to, economic, competitive, legal, governmental and technological factors. Accordingly, there is no assurance that the Company's expectations will be realized. The Company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by securities and other applicable laws.
Adam Friedman Associates