| SYNGEST'S BIOAMMONIA PROJECT COMPLETES AWARD CONTRACT WITH IOWA POWER FUND AND IOWA OFFICE OF ENERGY INDEPENDENCE Mini plant will make 150 TPD of nitrogen fertilizer from biomass San Francisco, CA - (Business Wire) December 13, 2010 - SynGest Inc. announced that the Iowa Power Fund and Iowa Office of Energy Independence have approved an award contract in the amount of $2.5 million for the design and engineering stage of a biomass ammonia facility to be built and operated in Iowa. One requirement of the contract is evidence that SynGest has raised an additional $3.5 million in new cash equity "The Iowa Power Fund board's intent to support the SynGest project will greatly help to accelerate our efforts to bring this critical technology to market," says Jack Oswald, Chief Executive Officer of SynGest. "This is a major milestone and an important step forward tor SynGest," adds Oswald. According to Oswald, of all the biofuels and bioproducts that are currently under consideration, "nitrogen fertilizer represents the most highly leveraged opportunity. That's because the United States imports more than 60% of the fertilizer used in the country". Unlike conventional ammonia production methods, the SynGest process does not use any fossil fuel energy. SynGest's Iowa plant will be the first better-than-100% "green" environmental project of its kind in the world, and will reduce greenhouse gas emissions by 150%. As world population increases from 6 billion to 9 billion inhabitants, the need for fossil-fuel-free fertilizer will be critical. Without this vital commodity, the yield of corn, wheat, rice and other food grains would fall by 50%.
"Even a 20% shortfall in the foreign ammonia supply chain, whether it's accidental or deliberate, will cause serious problems in our food industry and related financial markets," warns Oswald. "Our SynGest biomass-to-ammonia mini-plant business model will help to mitigate this risk. We will empower farmers, and make them impervious to external energy forces, while converting agricultural waste into fuel to power the farm and nitrogen fertilizer to replenish the soil." The bioammonia plant being designed under this project is estimated to eventually create 360 skilled constructions jobs and 40 full-time direct employees. Purchasing, handling and transportation of the biomass and sales of ammonia, and ancillary support services could generate up to an additional $10 million of new income to the nearby communities. The plant under design would use 130,000 tons of biomass per year to manufacture 50,000 tons of BioAmmonia annually, enough to fertilize 500,000 acres of nearby Iowa farmland under corn. Contact: Jack Oswald 415-986-8300 joswald@syngest.com www.syngest.com |
