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Methes Energies, a renewable energy company with a variety of products and services available to biodiesel fuel producers, has signed a letter of intent (LOI) to acquire the assets of OTC Energy Technologies (OTC), including all of OTC's technologies, potential clients, and knowledge regarding the conversion of certain types of biomass into a chemical quality syngas, which can be converted into renewable alcohols such as ethanol and methanol, and renewable hydrocarbons such as jet fuel and gasoline.
The acquisition is expected to strengthen Methes' opportunity to compete in the multi-billion dollar renewable fuels market, and also creates an entrance for the company into the multi-hundred billion dollar general transportation fuels market.
Methes' goal is to make small-size and medium-size processors available to clients that do not have access to the capital or biomass needed to start-up and operate large-scale facilities. The company believes that OTC's assets will provide an ideal solution for this situation and enhance its current technology portfolio.
"We are first and foremost a technology company, and we are proud to be adding to our portfolio this way. We are excited about the opportunity to offer a smaller solution to people that don't have the $100s of millions typically associated which such projects," John Loewen, vice president of operations at Methes Energies, stated in the news release. "What we've seen at their small-scale facility is truly amazing, and our goal is to quickly package and deploy turn-key solutions similar to our biodiesel processors. We look forward to the completion of this transaction which we expect will bring substantial revenues and in turn create significant value for our shareholders."
Paul Goodrow, president of OTC, detailed mutual interest of both companies.
"What attracted us to Methes was their proven ability to turn innovative process designs into working, efficient production plants," said Goodrow. "We believe that the OTC technology has the potential to be a low-cost producer of renewable and alternative fuels. And we believe that smaller, modular plants and low costs are not mutually exclusive. We anticipate that our hydrocarbon fuels will be cost competitive with, and will prove to be an acceptable replacement for crude oil derived transportation fuels. We look forward to working with Methes to rollout what we think will be a game changing business model."
Additional terms of the transaction were not provided.
For more information, visit methes.com
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