Surpasses Nine Million Gallons of Biodiesel Production
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.
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Related links:
http://www.novabiosource.com
CONTACT:
Kenneth T. Hern, Chairman and CEO of Nova
Biosource Fuels, Inc., +1-713-869-6682; or Hala Elsherbini of
Halliburton Investor Relations, +1-972-458-8000, for Nova
Biosource Fuels, Inc.
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