Maryland, United States [RenewableEnergyWorld.com] New Generation Biofuels Holdings Inc. (NGBF) has signed a Letter of Intent (LOI) with Eden Renewable Energy. Under this LOI Eden, plans to license product formulations, manufacturing technology and know-how from NGBF with the intent of constructing a biofuel manufacturing facility in Atlantic Canada.
Under the terms of the LOI, Eden will be the granted the exclusive right to produce and market NGBF’s products to the Canadian provinces of Newfoundland & Labrador, Nova Scotia, New Brunswick, and Prince Edward Island. Eden will pay NGBF a licensing fee of US $0.10 per gallon of biofuel produced and sold.
These terms are subject to product testing and manufacturing milestones which include final completion and commissioning of a manufacturing facility of at least 20 million gallons of annual production capacity.
Eden is expected to generate minimum annual sales of 5 million gallons in the first year, 7 million gallons in the second year and 10 million gallons in the third year following the completion. After that, minimum production quantity is expected to increase annually by 1.5 million gallons per year, up to 15 million gallons per year of annual sales.