Ensyn Corporation

Ensyn Corporation

April 04, 2014 13:30 ET

CRIBE Invests Up to CAD$1.5 Million in Ensyn's Renfrew Biofuels Facility

RENFREW, ONTARIO--(Marketwired - April 4, 2014) - Lorne Morrow, Chief Executive Officer of CRIBE, and David Boulard, President of Ensyn Technologies Inc., a wholly-owned subsidiary of Ensyn Corporation, are pleased to announce that CRIBE is investing up to CAD$1.5 Million in Ensyn's production facility in Renfrew, Ontario. CRIBE's investment will leverage funding from Ensyn for a total project value of up to CAD$4 Million. The purpose of the funding is to help Ensyn convert its existing production facility in Renfrew to a dedicated biofuels facility with enhanced production capacity of three million gallons/year.

Ensyn's biofuels business is based on the conversion of wood and other non-food, cellulosic biomass to advanced cellulosic biofuels. Ensyn's principal product is RFO™, a liquid biofuel that is a heating fuel and is also a feedstock for refineries for the production of gasoline and diesel (Refinery Coprocessing).

The capacity increase is being carried out in order to meet immediate demand for RFO from clients in Canada and the US. On March 7, 2014 Ensyn announced that it had signed a five-year contract with Memorial Hospital of North Conway, New Hampshire for the supply of RFO to be used as a heating fuel, replacing petroleum-based fuels.

The Renfrew project is expected to be completed by mid-2014. Production and sales from the facility will continue unimpeded during the work program.

Ensyn's Renfrew facility has been in operation since 2006, applying Ensyn's patented RTP® thermal conversion process to convert cellulosic, non-food biomass to liquids. Commercial operations to date have focused on the production of specialty chemicals and heating fuels for certain applications. In addition, Ensyn has used the Renfrew facility to demonstrate and commercialize its broader biofuels business.

Ensyn now requires immediate production capacity for expanded commercial deliveries of biofuels, and enhancing its Renfrew facility is a fast-to-market option to meet initial client demand. Additional demand will be met with production from other projects Ensyn and its partners are developing in the US and Canada.

Initial deliveries to US and Canadian buyers are expected to focus on heating oil customers and Refinery Coprocessing demonstration trials.

Ensyn's Renfrew facility has recently been qualified as a production facility by the US Environmental Protection Agency (EPA) under the US Renewable Fuel Standards (RFS2) program. Ensyn expects that sales of RFO from Renfrew to US customers will qualify for Renewable Identification Numbers (RINs) under the RFS2 program, enhancing contract economics. Renfrew's qualification under RFS2 has accelerated customer demand from US clients.

"Through CRIBE, Ontario is investing in bio-mass research and innovation not just in Northern Ontario, but throughout the province," said Reza Moridi, Minister of Research and Innovation. "Companies like Ensyn Technologies are leading the way, creating the next generation of renewable fuels, along with jobs and opportunities that will help ensure Ontario's future prosperity."

"Ensyn has been a leader in the development and commercialization of innovative products and materials derived from wood based fibre through application of its RTP technology," said Lorne Morrow, CEO of CRIBE. "This strategic investment by CRIBE not only supports the future of Ensyn's Renfrew RTP facility but also supports wood based forest industries in the area through the increased use of forest residue at the Renfrew facility."

"This project represents a critical step in our biofuels development process," said David Boulard, President of Ensyn Technologies. "Although Ensyn has had commercial operations for many years, and while the Renfrew facility has served us well as a commercial merchant facility for contract production and business development, Renfrew will now serve as our first commercial facility dedicated to biofuel production and will allow us to accelerate the development of market demand. We are pleased that CRIBE has elected to help us on this important project."

The Centre for Research and Innovation in the Bio-Economy is a provincial initiative to transform the forest products industry in Northern Ontario. We're an independent, not-for-profit research corporation, with $25 million in funding provided by the government of Ontario, that partners closely with other relevant organizations to provide support to direct and turn research results and innovative business opportunities into operational realities. CRIBE will help the bio-economy to play a central role in the metamorphosis of Northern Ontario's future - creating jobs, opportunity and prosperity.

Ensyn is a producer of advanced cellulosic biofuels and is increasing production capacity of RFO, its principal biofuel product, to meet demand. RFO is a heating fuel and is also a refinery feedstock for the production of gasoline and diesel. Ensyn is expanding capacity at its existing facility in Renfrew, Ontario, and is developing projects in the US and Brazil. Ensyn's RTP® technology has produced over 37 million gallons of RFO since 1989, dedicated primarily to chemicals and heating fuels; Ensyn is now increasing production in conjunction with key strategic relationships, including UOP, a Honeywell company; Chevron Technology Ventures; Fibria Celulose (Brazil); and Felda Palm Industries (Malaysia).

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