What are your competitive advantages?
We believe there are several. First, unlike conventional fertilizer plants, our biomass-based feedstock is completely renewable and doesn’t rely on subterranean hydrocarbons. So we are not vulnerable to the very volatile natural gas pricing structure. Secondly, our plants are much smaller than conventional plants and can be built in locations close to feedstock providers and areas with excellent means of transporting the fertilizer. Third, our cost of operations is very competitive compared to conventional plants and because the fertilizer is typically produced close to the ultimate consumer, the cost of transportation to the customer is minimized. In fact, unlike many “green” technologies, we do not need government subsidies to be profitable. Fourth, since we do not use natural gas or coal as a feedstock, our levels of greenhouse gas emissions (GHG) qualify us as a “minor emitter” because our emissions are so low. Our plant uses natural gas for plant utility purposes only.
What makes BION’s technology so unique and is it patent protected?
Our technology is dramatically different than conventional fertilizer production on the front end of the plant where the biomass gasification takes place. Instead of gasifying coal (like China) or reforming natural gas (like Russian, Egypt etc) we gasify woody biomass which is a renewable resource. This is considered waste biomass that would typically be burned or buried. The gasification process has been commercially active for over thirty years. Bionitrogen is the first company in the world to link this technology along with well proven ammonia and urea production processes. Yes the process is patent protected in the US, Russia and other countries. The first of several patents was issued in October 2013 and other patents are “patent pending.”
Where are the BioNitrogen Holdings Corp. headquarters located?
8300 NW 53 Street – Suite 350 Doral, FL 33166
Tel: 305-418-8545 – email: firstname.lastname@example.org
How is the BION process different from current urea production?
Our process gasifies woody biomass to create “syngas.” Conventional fertilizer plants either gasify coal (like China based plants) or reform subterranean hydrocarbons (natural gas) to produce syngas. Aside from how the syngas is produced and cleaned, our urea manufacturing processes are identical insofar as the syngas is converted into ammonia then urea.
Why is it Cleantech?
Cleantech refers to “Clean Technology” which means that the BioNitrogen process emits a very small fraction of the greenhouse gas emissions of a conventional plant. In fact, we believe our process will be certified “Carbon Neutral” and perhaps “Carbon Negative.”
Do you have a contract for the offtake?
We have a framework agreement and 25 year off-take contracts with United Suppliers, Inc., an organization of 700+ agricultural retailers that provide crop nutrients to approximately 2,000 farmers in 20 states and 3 provinces. The relationship secures long term contracts for up to 100% of all plant production in the US and Canada.
Who will supply your feedstock?
We have signed an agreement with BioResource Management, Inc. to manage the logistics and delivery of woody waste biomass feedstock to BioNitrogen’s plants. BioResource Management,Inc. specializes in the management of woody biomass resources for energy, chemical and fuel production. – See more here
[UPDATED] What are the two sites in Florida that have been chosen for plants and why?
These sites were chosen for a combination of factors including their proximity to acceptable feedstock, proximity to transportation for finished product (rail, water, road), site conditions and infrastructure (power, water, natural gas, etc.), plus local county and state incentives (tax abatement, transportation grants and funding).
[UPDATED] Are AMEC, CCC Group and Casale Group no longer part of the project or are these companies part of a different phase of the EPC to ground breaking contract?
We completed feasibility studies with KBR using Stamicarbon urea technology for a 360 TPD (Tons Per Day) plant and AMEC and CCC Group using Casale Group urea technology. Most recently, we completed a FEL 2 (Front End Loading) level feasibility study with AMEC using Andritz, Haldor Topsoe and Saipem as technology providers for a 520 TPD plant. These feasibility studies provided us with project scope, technical design and process details, and cost estimates. The feasibility study is essentially a very detailed description of what it would take to build a plant, how it would operate, the infrastructure requirements (power, water, natural gas), feedstock requirements (quantity and quality) and many other details. We have used this work to improve the project through risk reduction, plant sizing and cost efficiencies. The work these technology, engineering and construction firms have provided has allowed the Company to select what we consider to be the best partnerships available in the urea fertilizer plant engineering and construction industry. The project will be led by Saipem to provide an EPC contract for the plant and then bring in the necessary technology providers and construction contractors for the project as we move through 2015.
[UPDATED] What exactly is the sequence involved in the EPC contract to sale of bonds on through the beginning of construction?
The Engineering, Procurement and Construction (“EPC”) comes before or concurrent with financial closing of the project. The EPC contract describes what we are building, how much it will cost and how long it will take to build. While an EPC contract can be executed with no commitments on cost, timing or plant production, we require an EPC contract with cost and process guarantees to reduce risk to the Company and shareholders and for financing purposes. The more advanced the engineering, the more accurate the final construction cost estimates and stronger the commitments are from the suppliers which then leads to much better financing terms for the plant. So, it’s to the Company’s benefit to work closely with the technology providers as they advance the engineering to a point in which the true costs and risks are understood and minimized.
How much stock does management own?
The management, directors and officers own more than 30% of the company.
What is the role of Stifel Nicolaus in raising the funds?
Stifel is the underwriter for the tax free municipal bonds. In the case of Hendry County, Florida, the Hendry County Industrial Development Authority will be the issuer of the bonds, Stifel will underwrite or place the bonds.
Where are recent financials filed with the SEC?
See OTC website for financial filiings. http://www.otcmarkets.com/stock/BION/quote