JV receives preliminary funding commitment of $4.5 million to carry out bankable feasibility studies
Los Angeles, CA – December 15, 2011 – OriginOil, Inc. (OTC/BB: OOIL), the developer of a breakthrough technology to extract oil from algae and an emerging leader in the global algae oil services industry, today announced it has co-founded a new joint venture (JV), to develop biorefineries serving U.S. and NATO military requirements for alternative fuels.
The JV, Future Energy Solutions Unlimited, Inc. (FES), with its wholly owned Australian subsidiary, Alternate Energy Systems Pty Ltd (AES), plans to carry out bankable feasibility studies supporting project development and project delivery for diversified biofuel refining centers in strategic locations around the world.
OriginOil intends to contribute its proprietary systems and process knowledge to help develop multi-feedstock blending standards that will be needed for the new biorefineries. OriginOil recently announced a research agreement with the Department of Energy’s Idaho National Laboratory, in part to tackle these standards.
The Energime Group of Companies has given preliminary commitments to provide $1.5 million in matching funds to AES and $3 million to FES, for a total of $4.5 million. The investments, to be finalized in early 2012, are intended to fund the planned bankable feasibility studies, leading to a key role for Energime in designing, building, operating and owning these refineries.
“We are excited to be involved in this dramatic development in biofuels production,” said Bill Sosinsky, CEO of Energime. “We look forward to co-developing projects with Larry Sirmans throughout the world in this fast growing space. We believe other key players in private industry will soon be joining OriginOil in this venture, which responds to a mission-critical need of the U.S. and NATO for strategic fuels independence.”
“Through its massive commitment to alternative fuels, the U.S. military has provided the market both opportunity and challenge, which we intend to meet,” said Larry Sirmans, CEO of FES. “Our project delivery team has a unique blend of industry-specific knowledge and experience as well as very relevant military experience. We know and understand what both the military and the industry face to make this a reality. We are focusing on projects initially in the U.S. and Australia. Longer term, we see tremendous opportunity for Asia, Europe and Africa.”
A veteran of large-scale biofuels project development, Sirmans was Projects Director for Agri Energy and project developer for Australian Biofuels-Swan Hill Ethanol. He is the outgoing Technical Director of Australia’s MBD Energy Ltd, a leading player in Australia’s fast-growing algae biofuels sector.
“Our venture with Larry Sirmans is a game-changer for algae because these biorefineries will rely on algae to provide high energy values and a molecular structure that is virtually identical to petroleum,” said Riggs Eckelberry, OriginOil CEO. “It all starts with these feasibility studies and the setting of multi-feedstock standards. We’re excited to be helping out.”
In August, the departments of Agriculture, Energy and Navy announced their intent to invest up to $510 million during the next three years in partnership with the private sector to produce advanced drop-in biofuels to power military and commercial transportation.