SOURCE: Human BioSystems

May 01, 2008 16:15 ET

Human BioSystems (HBSC) and Its Partner Environmental BioMass Energy Announce Signing of $66 Million Term Sheet for the South Lake Energy Park

PALO ALTO, CA--(Marketwire - May 1, 2008) - (OTCBB: HBSC) -- Human BioSystems ("HBS"), a Silicon Valley-based biotech and bioenergy company, announced on April 23, 2008 that it had partnered with the principals of Dairy Development Group to form Environmental BioMass Energy, Inc. ("EBE") to produce renewable electrical energy from waste biomass such as cow manure. EBE now announces the signing of a term sheet for a commitment to provide financing of $66 million USD for a California-based biomass renewable energy generation project that will convert cow manure into 20 (net) megawatts of electricity, as well as steam, hot water and organic fertilizer.

Mr. Len Chapman, CEO of EBE, stated, "The total capitalized cost for the project is estimated to be 72 million USD. Funding is dependent on satisfying the conditions of the term sheet which includes EBE obtaining all necessary permits and land to be ready for construction."

Mr. Chapman went on to state, "This project is being developed under the project name 'EBE South Lake Energy Park, LLC.' It will utilize a thermal gasification conversion process. It is anticipated that the plant will be highly profitable with long-term revenue derived from the sale of power to regional utility companies and the sale of the organic fertilizer byproduct. The energy park addresses two critical demands. It eliminates the dairy farmer's most challenging growth constraint by safely processing the waste manure. It produces clean, renewable power which is in high demand due to California's Renewable Energy Portfolio Standards that require 20% of all power produced by 2010 to be from renewable sources. This goal is unlikely to be met in the near term and thus strategically positions EBE as a key provider."

Mr. Chapman further added, "The energy park is in the central dairy corridor in close proximity to 200,000 dairy animals. The facility is strategically located to take advantage of the extensive dairy industry in central California. It will also provide a clean, reliable solution to the increasingly pressing issue of waste manure management in a state with an enormous dairy-based agribusiness."

According to EBE, California's 1.5 million dairy cows produce over 48 million tons of waste in a year. Cow manure contains nitrogenous compounds that overwhelm waterways and precipitate algal blooms. In addition, manure can pollute groundwater and wells thus compromising safe human water consumption. Dairies are the single largest source of water pollution in several large California counties. EBE's unique approach will provide a solution to these difficult problems.

The EBE management team is led by CEO Mr. Len Chapman. He has been a Senior Executive with numerous Fortune 500 companies and has extensive contacts with the dairy industry in California. His team also includes other agribusiness leaders in the state.

Human BioSystems  Investor Relations    Environmental BioMass Energy, Inc.
Harry Masuda      Yes International     Len Chapman
(650) 323-0943    (800) 631-8127        559-687-1962

Certain statements contained herein are "forward-looking'' statements (as such term is defined in the Private Securities Litigation Reform Act of 1995). Because such statements include risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause results to differ materially from those expressed or implied by such forward-looking statements include, but are not limited to, the inability of HBS or EBE to raise funding for the proposed joint venture projects, failure to consummate the purchase of real property on which the park will be built, failure to obtain regulatory approvals for the construction of the energy park and plant, failure to obtain the required financing and to construct the energy park and plant, failure of the energy park and plant to meet standards, the inability to find raw material for the production of energy or to sell the energy on acceptable terms, the risks involved in pursuing a business unrelated to HBS' prior business, and other factors discussed in filings made by the Company with the Securities and Exchange Commission.

Contact Information

  • Human BioSystems
    Harry Masuda
    (650) 323-0943

    Investor Relations
    Yes International
    (800) 631-8127

    Environmental BioMass Energy, Inc.
    Len Chapman
    (559) 687-1962