Posted in | Biofuels | Energy

ALLM to Commercialize Patented CTS Technology to Produce Ethanol and Cellulosic Sugar

Alliance BioEnergy Plus, Inc. (the "Company"), is very pleased to announce the successful completion of its yearlong efforts to optimize its patented CTS technology to extract 100% of the sugar from virtually any cellulosic feed-stock after having it completed and proven by major industry ethanol producers.

The Company would also like to announce that over the past several months it has been in negotiations with several major industry producers-and-distributors of Ethanol and Cellulosic Sugar, and that at this time, the Company believes it is nearing the culmination of entering into a Joint Venture (JV) Relationship, a Marketing-and-Sales Agreement (MSA), and/or both.

How Might the Company Benefit from a Possible JV &/or MSA?

The adoption of ALLM’s technologies by industry producers will present them with an opportunity to increase their net bottom-line profit by potentially $48,000,000 a year in a typical 100mmgy (million-gallon year) corn ethanol plant. This will place those producers not incorporating ALLM’s technologies into a non-competitive position and thereby leaving them with one of two possibilities: either incorporate ALLM’s technologies or lose market share to their competitors.

From a hypothetical perspective, ALLM’s revenue under this licensing example could be:

ALLM is structuring a variety of programs to meet the needs of ethanol producers around the world. From lease purchase options with capacity fees and off-take agreements, to licensing and royalty agreements, ALLM is in the process of designing a technology roll-out program. Under a traditional licensing, the CTS process could be licensed to a Producer for a one-time fee of $5,000,000 and a 6% royalty fee based on the number of gallons of cellulosic ethanol produced by that Producer. On a worldwide basis there presently exist approximately 1,000 Ethanol producing facilities with a combined capacity approaching nearly 30 billion gallons this year.

To see an example of the potential revenue that can be generated by the Company through One Time Licensing and Yearly Royalty Fees, you can examine the approximately 230 ethanol producers that are in the US and Canada. With the addition of the CTS process, the average ethanol plant could add upwards of 30 million gallons of cellulosic ethanol with a value of $3.30 per gallon, more than double traditional ethanol. At a royalty rate of 6% of the cellulosic ethanol, the gross revenue from this example, assuming every ethanol plant adopted the CTS process, would yield the following:

One Time Licensing Fees: 230 x $5,000,000 = $1.15 Billion
Yearly Royalty Fees: 230 x $3.30 x 0.06 x 30,000,000 = $1,366,200,000 per year

(The above example is a projected forecast based on the information currently available to the Company.)

This is a hypothetical example of just one area that the technology can service and provide a competitive advantage in. There are numerous other applications that this technology can and will be applied to.

Once ALLM has concluded an agreement, the Company will file with the Securities and Exchange Commission and immediately follow-up with a news release. In the meantime, the Company expects to have additional preceding news announcements.

We want to thank all of ALLM's shareholders for their continued support and assure you that we are moving forward on all fronts and with the intent of increasing shareholder value.

Source: http://www.alliancebioe.com/

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