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CleanTech Biofuels, Inc. announces acquisition

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Hydrocarbon Engineering,

CleanTech Biofuels, Inc., an early stage development company focusing on producing cellulosic biomass from municipal solid waste for conversion to combined heat and power, advanced biofuels, and bio-based chemicals, has acquired a 99% membership interest in 25 Van Keuren, LLC, a New Jersey Limited Liability Company.

The New Jersey Sports and Exposition Authority has received certification of an amendment to the Solid Waste Management Plan from the New Jersey Department of Environmental Protection to include the proposed operation of a municipal solid waste transfer station and material recovery facility at a site located at 25 James Avenue, Jersey City, New Jersey. CleanTech Biofuels and 25 Van Keuren intend to seek the necessary permits and approvals from the New Jersey DEP to build, own and operate the transfer station and materials recovery facility.

As part of the 25 Van Keuren acquisition, CleanTech acquired an option to lease the property located at 160 James Avenue, Jersey City within 30 days after the final permit issues from the New Jersey Department of Environmental Protection. CleanTech Biofuels intends to build, own and operate its patented Biomass Recovery Process on the site as an integral part of the transfer station operation. CleanTech's patented technology has been operational at commercial scale by an unrelated third party operator at a plant in Coffs Harbour, New South Wales, Australia for over seven years. CleanTech expects that the Jersey City location will be its first United States installation.

The CleanTech patented technology processes, sterilises, and separates the biomass, recyclables, and inert residuals from municipal solid waste (MSW). The CleanTech process recovers 80 to 85% of valuable resources in the form of sterilised organic material and recyclables from every ton of MSW that it processes. This reduces the amount of waste that must be transported for final disposal in landfills to 15 to 20%. The CleanTech process dramatically reduces transportation and disposal costs while substantially increasing recycling and resource recovery rates.

A recent study by Rutgers University's New Jersey Agricultural Experiment Station suggests that more than 4 million t of New Jersey biomass could be used "to make electricity or propel transportation" in the State each year.

Approximately 72% of this biomass is produced by the state's population in the form of MSW. The study listed the following policy goals that could be achieved by tapping the underutilised resource: reducing dependence on fossil fuels, improving air quality by eliminating fossil-fuel pollution, and curbing greenhouse gas emissions that contribute to global climate change.

The Rutgers report states that New Jersey is aiming to have 22.5% of its electricity come from renewable energy sources by the end of 2020. The report said that with appropriate technologies and infrastructure, the State's biomass could deliver up to 654 MW of power or 230 million gal. of gasoline equivalent.

"The acquisition of 25 Van Keuren gives us the opportunity to work directly with the New Jersey Department of Environmental Protection towards achieving a solid waste facility permit that will allow us to demonstrate our Biomass Recovery Process technology in a traditional solid waste transfer station setting. We expect that a successful commercial demonstration of our technology in Jersey City will lead to additional opportunities in New Jersey, the Northeast and other locations across North America," said Edward Hennessey, Chairman and CEO of CleanTech Biofuels.

Adapted from press release by Rosalie Starling

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