WEST PALM BEACH, FL--(Marketwired - Mar 10, 2014) - BioNitrogen Holdings Corp. (PINKSHEETS: BION), a cleantech company that utilizes patented technology to build environmentally-friendly plants that convert biomass into urea fertilizer, announced today that it reached an agreement to purchase for $1 over 50 acres of land in Taylor County, FL from the Taylor County Development Authority ("TCDA"). Under the terms of the agreement, the TCDA will also furnish BioNitrogen with a $5 million loan to be used for plant engineering and site development work to be repaid upon the tax free bond closing of the plant. This is one of several planned facilities in the State of Florida and the southeast regional footprint for BioNitrogen.
Located in Perry, FL, this location is ideal for a BioNitrogen plant, because it is well located for feedstock and comes equipped with access to rail services, trucking and vehicular transportation, electricity, water, natural gas and telecom services. Closing of the land purchase and loan is expected to occur as soon as practical.
As part of the agreement, BioNitrogen agrees to construct a plant with an investment in excess of $200 million and provide a minimum of 45 direct full-time employees in Taylor County. The plant will produce approximately 200,000 tons per year of urea fertilizer and use local solid waste biomass such as wood waste as its feedstock. Closing of the bond and funding for this plant is expected to occur within 180 days, subject to the timing of approvals and government commitments.
"On behalf of the Taylor County Development Authority and Taylor county citizens, we look forward to working closely with the BioNitrogen management as they begin construction of the fertilizer plant. Not only will the plant bring excellent, high paying jobs to Taylor, but the plant builds on the County's development plan designed to bring robust manufacturing industry to the County. The construction of this new environmentally friendly fertilizer plant in Perry is an exciting development and a great opportunity for our local partners and community," said Jim Bassett, Chairman of the Taylor Economic Development Council. "It will allow us to utilize our local technical centers, including the local award-wining institute for millwright and welding, and our local work training programs."
"We are very excited to have secured this important property. This is a critical development for BioNitrogen and provides us with the land and access to resources we need as an initial step in committing to build a plant in Taylor County," said Bryan Kornegay Jr., President and CFO of BioNitrogen. "Funding from the Taylor County Development Authority is central to the success of the overall plant construction project and we are pleased to partner with it. The County has done a tremendous job of providing inducements and laying the path forward for state grants and construction of a plant in this County, as well as creating a long term partnership with us."
"The strong wood basket for feedstock, local technical centers for an educated workforce and excellent access to rail and utilities with minimal tie-in or up front capital costs provide huge time and cost incentives for us at this site," said Ernie Iznaga, VP Operations.
"The economic development rate offered by Duke Energy is an aggressive recruitment tool that is a real game-changer for energy intensive businesses like BioNitrogen," said Jeremy Susac, former head of Florida's energy office and an energy attorney with Real Energy & Environment Strategies based in Tallahassee, Florida.
In addition to negotiations in Taylor County, BioNitrogen is continuing its negotiations in Florida and elsewhere to construct similar facilities with similar economic impact. Further details on other sites are forthcoming. Today's news in Taylor County is great news and enables BioNitrogen to take one step closer to doing business in Florida.
"Simply stated, we are thrilled to be working on sites in Florida served by world class utilities companies. The Florida utilities at Taylor and other sites have taken a very proactive approach to keep us focused on doing business in the State of Florida and we look forward to finalizing interconnection agreements with them shortly, once the state's economic development office carries through with its incentive packages," said Bryan Kornegay Jr. "But, for the sake of clarity, we haven't lost focus on promising sites in other states -- most notably Louisiana."
About BioNitrogen Holdings Corp
BioNitrogen Holdings Corp. (PINKSHEETS: BION) is a cleantech company that utilizes patented technology to build environmentally-friendly plants that convert biomass into urea fertilizer. Our mission is to provide safe, cost effective, green solutions that are economically beneficial in locations where biomass is produced and urea is consumed. Additional information can be found at www.BioNitrogen.com
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