New Generation Biofuels Holdings, Inc. (Nasdaq: NGBF) announced that it has signed a Letter Of Intent (LOI) with Ace Biofuels of San Juan, Puerto Rico. Ace Biofuels will produce and market NGBF's Biofuel to the manufacturing sector in Puerto Rico.
New Generation Biofuels holds an exclusive license for North America, Central America and the Caribbean to commercialize proprietary technology to manufacture alternative biofuels from plant oils and animal fats. The Company believes that its proprietary biofuel can provide a lower cost, renewable alternative energy source with significantly lower emissions than traditional fuels.
According to a market assessment study by the University of Puerto Rico, the Latin American Nation’s domestic market consumption is in excess of 30 million gallons per annum. Puerto Rico sustains over 2,300 diversified industrial plants. According to Ace Biofuels President, Edgardo Fabregas Rios, the ‘whole of Puerto Rico in the process of exploring a number of alternative and renewable energy options’.
The LOI is subject to the completion of technical due diligence by November 30th, 2009. NGBF will then jointly manage the project to start producing the biofuel in Puerto Rico sometime in the first half of 2010. Ace Biofuels will pay NGBF a licensing fee per gallon of biofuel produced and sold.
In this morning’s statement New Generation Biofuels' Chief Executive Officer, Cary Claiborne commented on the deal;
"We have been working with Ace for some time now and see this opportunity as a key to opening up new markets and growing the licensing side of our business,"