Methes Energies to Offer Epoxidized Soybean Oil and Natural Polyol
LAS VEGAS, NV / ACCESSWIRE / May 19, 2015 / Methes Energies International Ltd. (NASDAQ: MEIL), announced today that it will start offering, from its Sombra, Ontario facility, Epoxidized Soybean Oil ("ESO") and Natural Polyol. Both of these bio-based products help address growing global demand for the replacement of non-sustainable products, such as fossil fuel chemicals, across a wide range of industries. ESO can be used, among other things, in the production of polyvinyl chloride (PVC) plastics and Natural Polyol in the production of paints, coatings, castings as well as insulating foams. The demand for both products has been increasing steadily in recent years and now accounts for a combined market value in excess of one Billion dollars in North America.
Because of its unique design and flexibility, the Company's biodiesel processors (the Denami 3000) can easily be re-tooled and adjusted for the production of ESO and Natural Polyol with minimal capital expenditures. The Company will initially convert about 20% of its 13 Million gallon per year biodiesel capacity for the production of ESO and Natural Polyol. The Company targets the third quarter of this year to start production and sales. If and when the biodiesel market improves to provide better margins than ESO and Natural Polyol, the Company can restart the production of biodiesel within approximately two weeks.
Methes Energies is also pleased to announce that it has retained Omni Tech International, Ltd ("Omni Tech") to lead the market development for both products. Omni Tech has a solid track record of success and considered one of the leading consulting firms in the emerging area of renewable resource development and the commercialization of bio-based products. While Methes will continue to focus on innovative technologies and production of renewable products, Omni Tech will work at identifying customers and new markets for the Company.
While management believes that the biodiesel industry will eventually get back on track, the lack of clarity from the EPA regarding the Renewable Volume Obligations for 2014, 2015 and 2016 as well as the Blender's Tax Credit for 2015 have continue to negatively impact the biodiesel industry. In light of the current situation management has been working, over the last several months, on alternative ways to maximize the use of the Company's assets in Sombra, Ontario and to increase shareholders' value.
Nicholas Ng, President of Methes said, "It is clear that selling biodiesel for less than our cost does not make much sense. We found two products that are compatible with our renewable core business and a great fit to our current technology, location and on-site resources. We see a bright future with ESO and Natural Polyol as well as much better margins. We are also very excited to be working with Omni Tech - they've been at this for almost three decades, they know the bio-based chemicals space very well and understand where the market is and where it is going. Also, to have the ability to produce other bio-based products using our existing assets is a big advantage. Biodiesel sells for about $3.00 a gallon right now with no margins and some Natural Polyols are selling between $5.00 to $17.00 per gallon with healthy margins!"
Lee E. Walko, Bio-based Business Development Manager for Omni Tech International, Ltd added, "Sustainability, reducing environmental impact are key drivers in many applications, including paints, coatings, adhesives and Polyurethanes. Companies are focusing on the use of renewable raw materials as a major way to address these goals. Epoxidized soybean oil is a key bio-based chemical intermediate that is being utilized today in many novel ways to create bio-based chemicals such as polyester polyols for polyurethane applications. Omni Tech is excited and pleased to be working with Methes Energies on these two opportunities. We are looking forward to helping Methes Energies expand their bio portfolio of products."
About Omni Tech International, Ltd.
Omni Tech International, Ltd., founded in 1986, provides technical, commercial and business consulting services to corporations and non-profit organizations. These services are provided by experienced professional consultants with broad expertise in process and product technology, research and development, quality and environmental compliance, business management, workforce development, finance and plant operations.
Omni Tech is proud to be considered one of the leading consulting firms in the emerging area of renewable resource development and the commercialization of bio-based products. For more information, please visit www.omnitechintl.com
About Methes Energies International, Ltd.
Methes Energies International Ltd. is a renewable energy company that offers a variety of products and services to biodiesel fuel producers. Methes also offers biodiesel processors that are unique, truly compact, fully automated state-of-the-art and continuous flow that can run on a wide variety of feedstocks. Methes markets and sells biodiesel fuel produced at its 13 MGY facility in Sombra, Ontario, to customers in the U.S. and Canada, as well as providing multiple biodiesel fuel solutions to its clientele. Among its services are selling commodities to its network of biodiesel producers, selling their biodiesel production and providing clients with proprietary software to operate and control their processors. Methes also remotely monitors the quality and characteristics of its clients' production, upgrades and repairs their processors and advises clients on adjusting their processes to use varying feedstock to improve the quality of their biodiesel. For more information, please visit www.methes.com.
This press release contains forward-looking statements regarding future events and financial performance. In some cases, you can identify these statements by words such as "may," "might," "will," "should," "except," "plan," "intend," "anticipate," "believe," "estimate," "predict," "potential," or "continue," the negative of these terms and other comparable terminology. These statements involve a number of risks and uncertainties and are based on numerous assumptions involving judgments with respect to future economic, competitive and market conditions and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond the Company's control. There are or may be important factors that could cause our actual results to materially differ from our historical results or from any future results expressed or implied by such forward looking statements. These factors include, but are not limited to, those discussed under the section entitled "Risk Factors" in our Annual Report on Form 10-K for the year ended November 30, 2014, filed on March 11, 2015, which is available at the U.S. Securities and Exchange Commission website at www.sec.gov. The forward-looking statements in this press release are based upon management's reasonable belief as of the date hereof. The Company undertakes no obligation to revise or update publicly any forward-looking statements for any reason.
Methes Energies International Ltd.
Michel G. Laporte, Chairman and CEO
SOURCE: Methes Energies International Ltd.