SOURCE: BioNitrogen Corporation
MIAMI, FL--(Marketwire - Aug 21, 2012) - BioNitrogen Corporation (PINKSHEETS: BION), a cleantech company that utilizes proprietary technology to build environmentally-friendly plants that convert biomass into urea fertilizer, announced today that it has signed a supply agreement with United Suppliers, Inc. for the production of urea fertilizer for its future plant in Florida.
United Suppliers is owned by 735 locally-controlled Ag Retailers and provides crop nutrients such as urea fertilizer to its owners in 20 states from east of the Rockies to west of the Mississippi River plus three of the western provinces in Canada.
This will be the first plant supply agreement under the framework agreement recently announced with United Suppliers. The supply agreement contract will provide United Suppliers with the plant production of approximately 124,200 short tons per year for twenty-five (25) years. The contract also includes a take-or-pay minimum equal to 100,000 short tons per year for the initial five (5) years.
The plant will be strategically located to source biomass feedstock. The location, in Hardee County, Florida, will be beneficial to the local community, the sourcing of biomass and the logistics of getting the urea fertilizer to market. The State of Florida is one of the largest producers of tree trimmings, a feedstock that is year-round and not subject to severe declines in production due to weather. On the contrary, bad weather events in Florida, such as heavy rains or hurricanes, can produce higher volumes of biomass feedstock.
Mr. Matt Carstens, United Suppliers Vice President of Crop Nutrients, stated, "We are extremely excited about working with the new management of BioNitrogen to achieve a long-term customer-supplier relationship focused on solutions that benefit both parties. This agreement for the initial plant provides a framework for building plants in the most strategic areas for our nitrogen fertilizer customers based on BioNitrogen's sourcing of biomass raw material. It will enhance our ability to obtain US-manufactured fertilizer from BioNitrogen."
Mr. Carlos Contreras, President and CEO of BioNitrogen, stated, "This supply agreement with such an important fertilizer supplier in the U.S. solidifies our mission and the credibility of our management team. We are building the initial plant where biomass is easily sourced, reducing our feedstock costs and risks. The initial engineering work for the Texas plants has been transferred over to this Florida plant. This more rapidly advances us towards the milestone of providing domestically produced urea fertilizer made from U.S. biomass to North American farmers."
About United Suppliers, Inc.
United Suppliers is a wholesale organization based in Eldora, Iowa with a defined purpose of helping their owners be more capable and competitive. The company is owned by locally controlled agricultural retailers who do business throughout the United States and Canada, and provides owners a reliable, convenient and timely supply of crop nutrient and crop protection products, as well as customized business solutions. United Suppliers was established in 1963 by 30 Iowa retailers joining forces to create their own distribution company and has since grown to 735 owners in 20 states & 3 providences, with more than 400 employees and sales in excess of $2 billion. For more information please visit www.UnitedSuppliers.com.
About BioNitrogen Corporation
BioNitrogen Corp. (PINKSHEETS: BION) is a cleantech company that utilizes proprietary technology to build environmentally-friendly plants that convert biomass into urea fertilizer. Our mission is to provide safe, cost effective, green solutions that are economically beneficial in locations where biomass is produced and urea is consumed. Additional information can be found at www.BioNitrogen.com.
Safe Harbor Statement
The forward-looking statements contained in this document involve risks and uncertainties that may affect the Company's operations, markets, products, services, prices and other factors as discussed in filings with the Securities and Exchange Commission. These risks and uncertainties include, but are not limited to, economic, competitive, legal, governmental and technological factors. Accordingly, there is no assurance that the Company's expectations will be realized. The Company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by securities and other applicable laws.