BioNitrogen Corp.

BioNitrogen Corp.

February 17, 2012 15:58 ET

BioNitrogen Reports on Financial Advantages of Building Smaller Modular Urea Fertilizer Plants

Company expects that modular fertilizer production plants will become the global benchmark for future production facilities

MIAMI, FLORIDA--(Marketwire - Feb. 17, 2012) - BioNitrogen Corp. (BION) (PINKSHEETS:BION) ("BioNitrogen" or the "Company"), a developer of a revolutionary, patent-pending technology for converting renewable and abundant biomass waste into high-nitrogen urea and urea fertilizer, announced today the benefits of smaller modular designs for production facilities that utilize this technology.

According to BioNitrogen's Chief Financial Officer, Mr. Michael McCarthy, in 1986 the cost of constructing a fertilizer plant was approximately $425,000,000.(1) The cost of constructing a similar plant today is approximately $1,100,000,000.(2) The amount of urea produced by such fertilizer plants is approximately 1,500,000 tons per year. (2) In addition, the cost of producing urea at these fertilizer plants must also include the cost to transport the raw materials and the finished products. These factors combine to make the acquisition of urea for domestic farmers and others less affordable.

In comparison, the cost of the average BioNitrogen plant is approximately $62,000,000. The Company's patent-pending technology places an emphasis on establishing a smaller, modular footprint while maintaining an effective, efficient production capability. BioNitrogen's production process relies upon gasification of biomass feedstock and converting the resulting gas into urea, rather than upon atmospheric nitrogen (N2) and natural gas (CH4) combinations to make anhydrous ammonia (NH3), the primary building block of all nitrogen fertilizers. This technology allows BioNitrogen to design and build urea production facilities that can produce up to 124,200 tons per year. The small size of the BioNitrogen plant allows the company to design and to build local, modular plants which result in the incurrence of lower transportation costs.

BioNitrogen's Chief Technology Officer, Dr. Mario Bervudes stated that this redesign is an important development because, "the recent volatility of natural gas prices has led to a dramatic shift from domestic to foreign production greatly reducing domestic production of urea fertilizers. The redesigned plants allow the Company to create a process that responds to this trend by using energy efficient and environmentally friendly biomass as the primary raw material rather than natural gas. The price and location advantages that a BioNitrogen plant is able to offer will greatly benefit the local farmer as well as the surrounding community. The world needs over 150 billion tons of fertilizer annually; this places BioNitrogen in the right marketplace at the right time."

BioNitrogen's plant designs are the result of over 20 years of development and research from Dr. Terry Collins, President and CEO of BioNitrogen. Dr. Collins earned his Ph.D. in Industrial Engineering and Management, with a specialty in Technology Transfer and Engineering Management from Oklahoma State University. Dr. Collins is currently Associate Professor of Industrial Engineering at Oklahoma State where for the past ten years he has continued to advance thought leadership in the study of Agricultural Engineering focusing on Manufacturing Systems, Agricultural Processing and Material Handling.

Dr. Collins describes BioNitrogen's mission as follows, "we are dedicated to helping manage the delicate balance of increasing global food production, while satisfying the demands for more cost-effective, operationally efficient and environmentally friendly production facilities and methods."

Dr. Collins adds, "To many people, the most familiar forms of renewable energy are the wind and the sun. But biomass, organic and abundant plant material, is the oldest source of renewable energy, used since our ancestors learned the secret of fire. Until recently, biomass supplied far more renewable electricity-or 'biopower'-than wind and solar power combined. In fact, most scientists believe that a wide range of biomass resources are beneficial because their use will clearly reduce overall carbon emissions and provide other benefits. Biomass use can be considered part of the terrestrial carbon cycle - the balanced cycling of carbon from the atmosphere into plants and then into soils. For example, trees and grasses that are native to a region often require fewer synthetic inputs and pose less risk of disruption to agro-ecosystems. Translation - using organic biomass native to a region to produce urea fertilizer will result in better soil preparation which often produces better crops."

About BioNitrogen Corp.

BioNitrogen is an entrepreneurial, American company that has been established to design and to build fully operational, turnkey manufacturing facilities to produce urea, a white, crystalline solid that is principally used in the agricultural industry as a crop fertilizer. BioNitrogen is undertaking these efforts in response to the challenges presented by an ever expanding world population, a rapidly increased need for food production, and an awareness of the fragility of the world's environment. Through the use of innovative, patent-pending technologies the Company is able to design and to build production facilities that transform residual agricultural waste and other biomass materials into high-quality bulk urea for sale to agricultural wholesalers and to retailers. Modular in design and substantially smaller than traditional urea production plants, the Company's facilities are capable of manufacturing 15 tons of urea per hour, which means that each plant has the potential to produce up to 124,200 tons per year.

BioNitrogen is headquartered in Miami, Florida, USA and trades on the over-the-counter bulletin board under the stock symbol BION.

Additional information can be found on BioNitrogen's website at

Safe Harbor Statement

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 - This press release contains forward-looking statements, including without limitation statements about the operations and future prospects for BioNitrogen Corp. (the "Company"). Forward-looking statements in this press release should not be viewed as pledges or undertakings regarding future performance. These forward-looking statements are subject to risks and uncertainties that could cause the Company's actual results to vary materially from those anticipated. The Company cautions the reader not to place too much reliance upon any such forward-looking statements, because such forward-looking statements reflect the opinions and beliefs of the Company only as of the date when they were made. Factors that may cause actual results to differ materially from the forward-looking statements contained in this release include, among others, the following: (i) the Company's future operational, financial or marketing performance; (ii) the ability of the Company to bring new products to market that are complementary to the products that the Company currently produces; (iii) the ability of the Company to increase or maintain profit margins on the products it offers to the marketplace; (iv) the strength of the Company's product development pipeline; (v) the Company's growth and profitability prospects; (vi) the estimated size and growth prospects of the natural fertilizer market; (vii) the Company's competitive position in the natural fertilizer market and its ability to take advantage of future opportunities in this market; (viii) the benefits of the Company's products to be realized by customers; (ix) the receptiveness of the agricultural and commercial market for bulk urea or other products that the Company manufactures; and (x) a reduction in the cost of natural gas or other inputs that may make the cost of producing urea using alternate methods less expensive compared to the cost of producing urea at one of the Company's plants. Forward-looking statements are based on management's beliefs and opinions at the time the statements are made. The Company does not have any obligation to update forward-looking statements should circumstances change or should management's beliefs or opinions change.



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