AE Biofuels, Inc., (OTCBB: AEBF), an advanced energy company that is developing and constructing biodiesel and next-generation ethanol facilities worldwide, announced today that it has completed the construction of a biodiesel facility with a nameplate capacity of 50 million gallons per year located in Kakinada, India, and has commenced the construction of a glycerin refinery adjacent to the biodiesel facility. The additional refining processes will significantly increase the value of the glycerin by-product to be sold into Indian markets.
Kakinada is a port city located in the state of Andhra Pradesh on the Eastern Coast of India, south of the city of Hyderabad. The AE Biofuels plant is connected to the Port of Kakinada by pipeline, and has Export Oriented Unit (EOU) status, thus benefiting from tax-free imports and other tax benefits. The plant is 74% owned by AE Biofuels and is 26% owned by one of the world’s largest palm oil suppliers, and a Singapore palm trading company.
Crude glycerin is the main by-product recovered from the separation phase of the biodiesel refining process, comprising about ten percent of volumes produced. AE Biofuels’ expansion at Kakinada will upgrade the current glycerin refining process, enabling the company to produce, sell, and market pharmaceutical grade glycerin in India. Refined glycerin currently sells at up to an 80% premium over crude glycerin in the Indian market.
“Our investment in the glycerin refinement process in India will allow us to produce a valuable commodity that is in strong demand,” said Eric McAfee, chairman and CEO of AE Biofuels, Inc. “Our Indian plant supplies growing local and global markets for biodiesel in order to meet expanding mandates, while benefiting from rising prices to meet expanding demand for premium-quality pharmaceutical grade glycerin.”
About AE Biofuels, Inc.
AE Biofuels, Inc. is an advanced energy company that is developing, constructing and operating biodiesel and ethanol facilities worldwide. The company is commercializing its patent-pending next-generation technology that enables the production of biofuels from both non-food and traditional materials. AE Biofuels’ goal is to become a leader in the production and sale of renewable fuels, and to supply these clean-burning fuels to markets worldwide. For additional information about AE Biofuels, visit www.aebiofuels.com.
Forward-Looking Statements
The information contained herein includes forward-looking statements. These statements relate to future events or to the company’s future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. Investors should not place undue reliance on forward-looking statements since they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond the company’s control and which could, and likely will, materially affect actual results, levels of activity, performance or achievements.
Any forward-looking statement reflects the company’s current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to operations, results of operations, growth strategy and liquidity. The company assumes no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.
Contacts:
AE Biofuels, Inc.
Andy Foster, 408-213-0928
afoster@aebiofuels.com
or
Investor:
Liviakis
Financial Communications, Inc.
John Liviakis, 415-389-4670
john@liviakis.com
