Posted Dec. 22, 2010

Regina, Saskatchewan-based Clean Power Concepts Inc. has obtained rights to exclusive patent technology capable of extracting protein to make aquaculture and other value-added feed products out of lipid sources from biodiesel production plants.

Originally developed as a result of scientific research conducted by the Canadian Department of Fisheries and Oceans, CPC President and CEO Michael Shenher said the patented technology is ideal for extracting proteins from canola meal where it then can be converted into livestock, chicken and fish feed products and sold into those respective markets. Deploying the newly-acquired patent technology, according to Shenher, would be ideal for financially distressed biodiesel manufacturing refiners or existing producers running on a reduced capacity basis seeking additional revenue streams.

"We believe that this is going to be able to change the economics of biodiesel production because it's going to significantly supplement the revenue from the canola crush operations," Shenher said. "There's a lot of interest right now in value-added agriculture and aquaculture feed products."

Shenher noted that the company is open to exploring partnership opportunities with existing biodiesel producers to sublicense the patented technology, both in North America and internationally. He said that the company has targeted potential opportunities in South America. "I would expect that we'll have [the technology] commercialized by the end of 2011 at the very latest," Shenher said.

In addition to potential partnership deals, according to Shenher, the company intends to deploy the newly-acquired patented technology within its existing biodiesel production plant in Regina, a 20 MMly canola-based refinery operated by CPC's subsidiary General Bio Energy Inc. Although the plant has been idle for nearly a year, Shenher said the patents should revitalize its own canola operations significantly. Additionally, he said, plans are in the works to build a large-scale canola crush plant in a decentralized location away from its production plant in Western Saskatchewan to supply canola-based biodiesel producers canola oil feedstock.

"The economics have been very strong in canola processing, and so we've continued to crush canola and have significantly grown our canola crushing enterprise," Shenher said. "We see that the fundamentals seem to be turning around more in favor of biodiesel again."

Shenher added that he expects the recent tax package signed into law by President Barack Obama on Dec. 17 to be a catalyst for driving more growth in the canola oil markets. "I think it's only going to make the strong demand for our canola oil even stronger."