Alliance BioEnergy sublicences technology to Earth’s Renewable Energy

In California, Alliance BioEnergy Plus Inc. recently announced that its wholly owned subsidiary, AMG Energy Group, has entered into a sublicensing agreement with Earth’s Renewable Energy LLC of Newport Beach, California. The sublicense agreement permits Earth’s Renewable Energy to use the company’s patented cellulose to sugar (CTS) technology at a soon-to-be-built plant in Bakersfield, California.

The single process train will be capable of processing 250 tons per day of biomass, such as almond and pistachio trees and their hulls, which will be supplied under contract by a $4 billion private agricultural conglomerate in California. The plant also has an offtake agreement with Chem-Energy Corp., who will utilize the C5/C6 sugar mix and pure lignin to create fine chemicals and other high value bioproducts. As additional feedstocks become available, the plant will expand processing to 1,000 tons per day.

The sublicense fee paid to AMG Energy Group is $1.25M plus 5 percent of ongoing gross revenue derived from the CTS process. The cash portion of the fee will be paid in installments, with the initial payment made within the next 30 days, providing the company with an immediate capital infusion and a longer-term revenue source.