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AMG Energy secures sublicense agreement

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Hydrocarbon Engineering,

AMG Energy Group has secured an agreement with Earth’s Renewable Energy, LLC, which will allow a newly built plant in Bakersfield, CA to process 250 tpd of biomass to create C5/C6 sugar mix needed for high value bio-products; creates new revenue stream for company.

Alliance BioEnergy Plus, Inc. (the company) has announced that its wholly owned subsidiary, AMG Energy Group, has entered into a sublicensing agreement with Earth’s Renewable Energy, LLC of Newport Beach, CA. The sublicense agreement permits Earth’s Renewable Energy to use the Company’s patented cellulose to sugar (CTS) technology at a soon-to-be-built plant in Bakersfield, CA.

The single process train will be capable of processing 250 tpd of biomass, such as almond and pistachio trees and their hulls, which will be supplied under contract by a US$4 billion private agricultural conglomerate in California. The plant also has an offtake agreement with Chem-Energy Corporation, who will utilise the C5/C6 sugar mix and pure lignin to create fine chemicals and other high value bio-products. As additional feedstocks become available, the plant will expand processing to 1000 tpd.

The sublicense fee paid to AMG Energy Group is US$1.25 million plus 5% of ongoing gross revenue derived from the CTS process. The cash portion of the fee will be paid in installments, with the initial payment made within the next 30 days, providing the company with an immediate capital infusion and a longer-term revenue source.

“We are excited to take this step forward and to secure a sublicensing agreement that will generate both near and long term revenue for our company, while further validating our technology as the industry standard for the economic production of energy efficient bio-products,” said Daniel de Liege, CEO, Alliance BioEnergy Plus. “We look forward to delivering the technology once their plant is ready and to work with the team at Earth’s Renewable Energy to ramp up processing and to deliver high quality materials to our commercialisation partners.”

“We are pleased to be partnering with AMG Energy and Alliance for the production of more environmentally friendly bio-products,” said Katherine Fabris, President of Earth’s Renewable Energy. “We identified their technology as the best in the industry from both a cost and production perspective, and look forward to a productive long-term relationship.”


Funding for the soon-to-be-built plant in Bakersfield will be provided by Twin Rivers Group LLC, a diversified business development firm with offices in Texas and Kansas and a strong concentration in the renewable energy space. Twin Rivers Group has teamed up with Earth's Renewable Energy to develop multiple processing facilities deploying a patented proprietary processing technology under a licensing agreement with AMG Energy Group. Once the Bakersfield plant is operational, there are plans to build three additional plants and further expand processing.

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