PetroSun, Inc (Other OTC:PSUD.PK) announced its Algae BioFuels subsidiary issued an exclusive algae to biofuel production technology license to ETC Energy for the Native American markets.
ETC Energy will seek to enter into joint venture agreements with Native American tribes to produce biodiesel, electricity and animal feed from the algae to biofuel technology on tribal lands.
Independent studies demonstrate that algae are capable of producing oil yields in excess of 10,000 gallons per acre annually. The oil yield per acre annually from conventional crops such as corn (80 gallons) and soybeans (40 gallons) are far less than algae. Biodiesel produced from algae offers an alternative that is not subject to commodity risks as is crude oil, corn and soybeans and is capable of supplying a sustainable feedstock.
ETC Energy will also be producing high protein animal feed from the algae biomass, ethanol and potential excess electricity as additional revenue streams from plant operations. The production process will also have a beneficial affect to the environment as algae consume carbon dioxide in the presence of sunlight. The source of the carbon dioxide can come from power plant emissions that would create CO2 credits.
PetroSun also announced its subsidiary, PetroSun BioFuels Australasia, has entered into a Letter of Intent with Icon Drilling of Brisbane, Australia. The purpose of the transaction is to create a publicly traded alternative fuel company in Australia.
Icon Drilling (ASX: ICN) is a subsidiary of Icon Energy. The parties have agreed to change the name Icon Drilling to PetroSun BioFuels.
PetroSun will be issued 55% of PetroSun BioFuels common shares, with Icon Energy retaining a 20% interest. A capital raise will be conducted through an offering that will include up to 25% of the common shares of the new entity.
PetroSun BioFuels Australasia was issued the exclusive license agreement for the Australasian market by PetroSun. The rights granted under this agreement included the technology to cultivate algae on a commercial scale and refine the extracted algal oil into biodiesel. The Company will also be producing high protein animal feed from the algal biomass, ethanol and potential excess electricity as additional revenue streams from plant operations.
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