Surpasses Nine Million Gallons of Biodiesel Production HOUSTON, Sept. 8
HOUSTON, Sept. 8 /PRNewswire-FirstCall/ -- Nova Biosource Fuels, Inc.
(Amex: NBF), a refiner and marketer of ASTM quality biodiesel, announced today
it has received certification of substantial completion from the independent
engineer for its Seneca biodiesel refinery project. Certification of
substantial completion requires that the refinery demonstrates to the
satisfaction of the project's independent engineer the following for a
required test period:
-- throughput levels in excess of 5,760 gallons per hour of biodiesel
production (which is 80 percent of the refinery's nameplate capacity)
-- use of feedstocks with a minimum free fatty acid (FFA) level of five
percent
-- minimum biodiesel yield and maximum methanol consumption requirements
-- finished biodiesel meets or exceeds ASTM D6751 quality standards
-- finished technical-grade glycerin of 95 percent or greater purity and
other testing requirements
During the test period, the Seneca refinery met all of these requirements
using feedstocks with FFA levels ranging from 8 percent to 10 percent. The
Seneca refinery also recently surpassed nine million gallons of production
since beginning operation on March 31, 2008.
"Substantial completion is a very significant milestone as it validates
that the Nova process technology incorporated into the Seneca refinery
functions and performs as expected, construction activity is complete, and
commissioning, testing, shake down and staff training have reached a point in
which the refinery is self sufficient," said Kenneth T. Hern, Chairman and CEO
of Nova. "This achievement is a credit to the diligent work of our technical
and operations teams, who have used a wide variety of inedible feedstocks to
produce high quality biodiesel, including high FFA corn oils extracted from
dried distillers grains. We look forward to completing the final performance
testing requirements for the refinery as we continue to work with our lender
and potential members of a syndication group to increase our working capital
credit facility to support sustained operations at full capacity."
Nova's plan for the next several weeks is to continue to operate the
refinery at 50 percent to 70 percent of nameplate capacity while continuing to
make refinements and adjustments intended to ensure reliability for the final
performance demonstration requirements under the credit agreement, including
demonstration of sustained operation at 90 percent of nameplate capacity,
completion of all "punchlist" items and satisfaction of environmental
compliance requirements.
About Nova Biosource Fuels, Inc.
Nova Biosource Fuels, Inc. is an energy company that refines and markets
ASTM standard biodiesel and related co-products through the deployment of its
proprietary, patented process technology, which enables the use of a broader
range of lower cost feedstocks. Nova is focused on building and operating a
number of Nova-owned biodiesel refineries, with a goal of attaining production
capacity of between 180 to 220 million gallons of biodiesel fuel on an annual
basis. In particular, it is completing the final testing and performance
requirements related to the construction of its 60 million gallon per year
biodiesel refinery in Seneca, Illinois, commencing the marketing of biodiesel
obtained pursuant to its offtake agreement with the Scott Petroleum biodiesel
refinery in Greenville, Mississippi and investing to improve the profitability
of its 10 million gallon per year biodiesel refinery in Clinton, Iowa. Nova's
business strategy for the next three years includes building up to seven
biodiesel refineries with production capacities ranging from 20 to 100 million
gallons each per year. More information on Nova Biosource Fuels can be found
at http://www.novabiosource.com.
Forward-Looking Statements
This news release contains forward-looking statements, including
statements regarding Nova's plans, goals, strategies, intent, beliefs or
current expectations. These statements are expressed in good faith and based
upon a reasonable basis when made, but there can be no assurance that these
expectations will be achieved or accomplished. Readers are urged to carefully
review and consider the various risk factors disclosed by Nova in its reports
filed with the Securities and Exchange Commission, including Nova's Quarterly
Report on Form 10-Q for the period ended April 30, 2008, which describes the
risks and other factors that may affect Nova's business, financial condition,
results of operations and cash flows. If one or more of these risks or
uncertainties materialize, or if the underlying assumptions prove incorrect,
Nova's actual results may vary materially from those expected or projected in
this release or in Nova's other filings.
SOURCE Nova Biosource Fuels, Inc.
