By Canadian Biomass
December 9, 2013, Las Vegas, Nev. - Methes Energies has signed a Letter of Intent to acquire the assets of OTC Energy Technologies Inc.
By Canadian Biomass
December 9, 2013, Las Vegas, Nev. – Methes Energies has
signed a Letter of Intent to acquire the assets of OTC Energy Technologies Inc.
The sale includes all of OTC's technologies and knowhow
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, renewable hydrocarbons such as jet fuel and gasoline. The assets also
include an existing pipeline of potential clients that Methes intends to
The addition of OTC technologies to Methes' portfolio of
products will allow Methes to compete more fully in the multi-billion 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 $100's of millions
typically associated which such projects. What we've seen at their 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 Inc.
continued, "What attracted us to Methes was their 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
The terms of the transaction were not provided and are
subject to a non-disclosure agreement until such time as a definitive agreement