Ensyn Corporation

March 06, 2014 14:40 ET

Ensyn and Memorial Hospital Sign RFO™ Biofuel Supply Agreement

NORTH CONWAY, NEW HAMPSHIRE--(Marketwired - March 6, 2014) - Ensyn Fuels, a wholly-owned subsidiary of Ensyn Corporation ("Ensyn"), has signed a contract with Memorial Hospital of North Conway, New Hampshire ("Memorial") for the supply of RFO™, Ensyn's advanced cellulosic biofuel. Ensyn's RFO, produced from forest residues, will be used by Memorial as a heating fuel, replacing petroleum-based fuels. This initiative will lower Memorial's environmental footprint and will provide Memorial with net cost savings. Under the contract signed with Memorial, Ensyn Fuels will provide Memorial with approximately 300,000 gallons/year of RFO for a renewable term of five years, commencing deliveries as early as April, 2014.

Adoption of Ensyn's RFO will allow Memorial to convert its entire heating requirements from petroleum fuels to Ensyn's renewable fuel. This will reduce Memorial's greenhouse gases from heating fuels by approximately 85% and total air emissions by approximately 75%. In addition, adoption of Ensyn's RFO will provide Memorial with substantial cost savings.

Memorial will be able to use its existing boilers to combust the new fuel. Ensyn Fuels will supply the onsite tankage and the RFO delivery system to the boiler.

Ensyn Fuels will initially supply RFO to Memorial from its production facility in Renfrew, Ontario. This plant has recently been qualified by the US Environmental Protection Agency (EPA) under the US Renewable Fuel Standards (RFS2) program. Ensyn expects that sales of RFO from this facility to Memorial will qualify for Renewable Identification Numbers (RINs) under the RFS2 program, enhancing contract economics. This contract will be one of Ensyn Fuels' first contracts for RFS2-eligible heating oil in the U.S. under the recently finalized EPA RFS2 Heating Oil rule.

Ensyn companies have been operating commercially for over 25 years and their RTP® technology has produced over 37 million gallons of fuels and chemicals from wood residues. While commercial production to-date has been focused on heating fuels and chemicals for the food industry, Ensyn is now expanding production to serve a broader base of biofuel clients and applications. The contract with Memorial is one of the first new contracts to be signed committing production from Ensyn's expanding production capacity and the first supply contract to be signed with a hospital.

"This is one of our first contracts related to the supply of RFO from our expanded production capacity," said Dr Robert Graham, Ensyn's Chairman and CEO. "We are pleased that Memorial Hospital, with its dedication to the environment along with excellence in health care, will help initiate the roll-out."

"Memorial is proud to play a pioneering role as an early-adopter in Ensyn's developing biofuels business," said Scott McKinnon, CEO and President of Memorial Hospital, "the Ensyn Fuels agreement provides the Hospital with a lower environmental footprint, operating cost savings, no net capital costs and we can use the same boiler equipment we have now - and switch back later to conventional fuels if we wish. This provides us with tremendous fuel optionality."

For more information on Ensyn's heating fuels, call Greg Gosselin, (603) 359-8585.

About Memorial Hospital

Memorial Hospital is a not-for-profit 25-bed Critical Access Hospital located in North Conway, NH, and is a member of the MaineHealth family. Its hospital services include a 24-hour emergency department, surgery center, clinical laboratory, heart health & wellness programs, family birthing center, sleep center, wound care and hyperbaric medicine center, and the Miranda Center for Diabetes. Physician practices include primary care and family medicine, women's health, orthopedics and sports medicine. The Merriman House, a 45-bed nursing home specializing in Alzheimer's and other memory disorders, is also located on the hospital campus. Together, our staff and providers are committed to meeting the health needs of the Mt. Washington Valley and surrounding communities by collaborating with community partners in the delivery of accessible, comprehensive, compassionate, and quality health care.

About Ensyn Corporation

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 renewable heating fuel and is also a refinery feedstock for the production of transportation fuels. Ensyn is expanding capacity at its existing facility in Renfrew, Ontario, and is developing projects in the U.S. 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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