PetroSun, Inc. (Other OTC:PSUD.PK) has agreed to a $40 million joint venture to produce biodiesel and other products from algae in China.
The Scottsdale, Arizona-based company has executed an agreement with Shanghai Jun Ya Yan Technology Development Co., Ltd. to establish a commercial-scale algae farm system to produce algae biomass for conversion to biodiesel, ethanol and other commercial products.
The terms of the agreement include a $40 million sole funding commitment from Shanghai Jun Ya Yan Technology Development for the construction and equipping of the initial algae farm system.
The profits from the venture will be allocated on a 50/50 basis between the parties. PetroSun China has been granted the license from PetroSun, Inc. for the algae-to-biofuel technology and will manage the operations in China.
Earlier this year PetroSun formed a joint venture with Optimum Biofuels, LLC of Gilbert, Arizona to construct and operate a biodiesel refinery near Coolidge, Arizona
About PetroSun
PetroSun, Inc. is a diversified energy company with technology and operations in the commercialization of algae-to-biofuels, microbial enhanced oil recovery, oil and gas exploration and development and oilfield pipe and supply.
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