Methes signs LOI to acquire assets of OTC Energy Technologies
Methes Energies International Ltd., a renewable energy company that offers an array of products and services to biodiesel fuel producers, today announced that it has signed a Letter of Intent to acquire the assets of OTC Energy Technologies Inc., including all of OTC's technologies and know-how relating to the conversion of several types of biomass into a chemical quality syngas, which can be converted into renewable alcohols such as ethanol and methanol, and renewable hydrocarbons such as jet fuel and gasoline. The assets also include an existing pipeline of potential clients that Methes intends to quickly pursue. The addition of OTC technologies to Methes' portfolio of products will allow Methes to compete more fully in the multibillion dollar renewable fuels market, and to start to compete in the multi-hundred-billion dollar general transportation fuels market.
The goal of the company is to make small and medium size processors available to clients where large scale facilities are not feasible because of the typical high set-up costs associated with such projects, as well as the availability of biomass required to operate a facility. Methes believes that this acquisition will be a perfect match and will enhance its current technology portfolio. The focus of the company will remain the same—to provide small and medium size solutions to clients involved in the alternative and renewable energy sector.
John Loewen, vice president of operations at Methes Energies, said, “We are first and foremost a technology company, and we are proud to be adding to our portfolio this way. We are excited about the opportunity to offer a smaller solution to people that don't have the hundreds of millions of dollars typically associated which such projects. What we've seen at its small-scale facility is truly amazing, and our goal is to quickly package and deploy turnkey solutions similar to our biodiesel processors. We look forward to the completion of this transaction which we expect will bring substantial revenues and in turn create significant value for our shareholders.”
Paul Goodrow, president of OTC Energy Technologies, added, “What attracted us to Methes was its proven ability to turn innovative process designs into working, efficient production plants. We believe that the OTC technology has the potential to be a low-cost producer of renewable and alternative fuels. And we believe that smaller, modular plants and low costs are not mutually exclusive. We anticipate that our hydrocarbon fuels will be cost competitive with, and will prove to be an acceptable replacement for crude oil derived transportation fuels. We look forward to working with Methes to rollout what we think will be a game-changing business model.”
The terms of the transaction were not provided and are subject to a nondisclosure agreement until such time as a definitive agreement is signed. The transaction is subject to customary due diligence by the company, which has already retained an engineer to assist with the process.