Press Release
March 25, 2011
Methes Energies Canada Provides Update on Status of Contribution Agreement with Natural Resources Canada for its Sombra, Ontario Facility
New York, March 25, 2011 – Methes Energies International Ltd. announced today that its wholly‐owned subsidiary, Methes Energies Canada Inc., has been informed by Natural Resources Canada that a contribution agreement has been drafted and will soon be sent to Methes Energies for signature. The contribution agreement with Natural Resources Canada will allow the company to receive a production incentive from one of NRCan's administered program ‐ the ecoENERGY for Biofuels.
The agreement will provide Methes with a financial contribution of up to a maximum amount of Thirty Million Canadian Dollars ($ 30,000,000 CDN) over a period of six years ending on March 31st, 2017. The contribution is for Methes' 50 Million‐liter per year (13 MGY) facility located in Sombra, Ontario, Canada.
The ecoENERGY for Biofuels Program supports the production of renewable alternatives to gasoline and diesel, as well as encourages the development of a competitive domestic industry for renewable fuels. The initiative provides operating incentives to producers of renewable alternatives to gasoline and diesel based on production levels and market conditions. It makes investment in production facilities more attractive by partially offsetting the risk associated with fluctuating feedstock and fuel prices.
"We are proud to have been deemed eligible for a full funding by NRCan for our Sombra facility. We look forward to be able to contribute toward the Canadian biodiesel mandate due to start in July of this year. This program is a great example of how the Canadian Government is doing its part in increasing our supply of biodiesel for a clean and greener environment for all Canadians", said Mr. John Loewen, President of Methes Energies Canada Inc.
About Methes Energies International Ltd. (“Methes International”)
Through its two wholly-owned subsidiaries - Methes Energies Canada Inc. and Methes Energies USA Ltd. - Methes Energies International Ltd. stands as a leader in the biodiesel arena with its innovative and efficient processes that are delivered to its clientele in easy turn-key solutions. These biodiesel solutions are designed for heavy users of biodiesel and diesel fuels, traditional diesel and biodiesel fuel distributors, large scale biodiesel producers, as well as entrepreneurs seeking the independence of producing their own fuel.
In 2007, Methes Energy Inc. introduced the Denami 600. This state-of-the-art design is the industry's first compact, fully automated continuous flow biodiesel processor that offers the flexibility of using a wide variety of feedstock options. We believe that the Denami 600 positions itself as the most reliable and cost effective method of producing quality top grade B100 biodiesel fuel, which meets or exceeds current ASTM standards. The Denami 600 can produce a total of 1.3 million gallons (5 million liters) per year. Additionally, the Denami 600 is one of the only commercially available fully automated compact units on the market today. Finally, Methes Energies provides its customers with an efficiency of scale, reliability and independence from the traditional petroleum business sector. More information can be found at www.methes.com.
Forward-looking Statements: This news release contains forward-looking statements related to the future financial condition and results of operations of Methes. These statements are based on current expectations and estimates about the biodiesel markets and industry in which Methes operates and management's beliefs and assumptions regarding these markets. These statements are subject to important risks and uncertainties which are difficult to predict and assumptions which may prove to be inaccurate. Some of the factors which could cause results or events to differ materially from current expectations include but are not limited to: general economic conditions, market or business conditions; changing competitive environment; changing regulatory conditions or requirements; changing technology; and success in implementing productivity initiatives. Some of these factors are largely beyond the control of Methes. Should any factor impact Methes in an unexpected manner, or should assumptions underlying the forward-looking statements prove incorrect, the actual results or events may differ materially from the results or events predicted. All of the forward-looking statements made in this document are qualified by these cautionary statements, and there can be no assurance that the results or developments anticipated by Methes will be realized or, even if substantially realized, that they will have the expected consequences for Methes. Readers should not place undue reliance on any forward-looking statements. Further, Methes disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or any other occurrence.
|