SOURCE: BioNitrogen Corporation
DORAL, FL--(Marketwire - Feb 28, 2013) - BioNitrogen Louisiana Holdings, LLC, a wholly-owned subsidiary of 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 the Louisiana Community Development Authority ("LCDA") has granted preliminary approval of the issuance of up to $1.25 billion in tax-exempt bonds for the acquisition, development and construction of five plants in Pointe Coupee Parish, Louisiana. The LCDA's action clears the way for the Company to proceed to the Louisiana State Bond Commission for approval.
The Company also signed a letter of intent to purchase approximately 250 acres of land in Pointe Coupee Parish for the construction of the plants. The land, which is adjacent to the Lettsworth Port owned by the Pointe Coupee Port Commission, is located 65 miles north of Baton Rouge on the Lower Old River, a tributary connecting the Red River and the Mississippi River West of the Old River Lock.
BioNitrogen intends to contract KBR to engineer and construct the five plants on the land, which will be built in parallel with the Hardee County facilities. The proposed five plants are projected to produce 1,800 tons of urea daily or 621,000 tons of urea annually. Last week, BioNitrogen received approval from the Florida Governor to issue up to $175 million of tax-exempt bonds for the construction of the Hardee County plant.
"The Baton Rouge Area Chamber (BRAC) looks forward to working with BioNitrogen as they establish and develop their new company in the Baton Rouge area. The construction of this new facility will be a huge opportunity for our partners in Pointe Coupee Parish," said Adam Knapp, president and CEO of BRAC. "It is always a win for the region to have a native resident return to the area to build and develop their company and our region."
"The Chairman and the Executive Committee are pleased for Pointe Coupee Parish and happy to clear the way for BioNitrogen to proceed to the Louisiana State Bond Commission for approval," said Steve Dicharry, Executive Director of the LCDA.
"This is wonderful news for Pointe Coupee Parish," said Melanie Bueche, President of the Pointe Coupee Police Jury. "BioNitrogen has made a great choice in selecting Pointe Coupee as the location for these plants and we look forward to working with the company."
"We're extremely excited to have secured this important property," said Bryan Kornegay, Jr., President and CFO of BioNitrogen. "In addition to the Hardee County Florida plants, this strategic expansion into Louisiana provides BioNitrogen with an ample supply of biomass in an area with a growing market for urea and excellent transportation. We've been working closely with the Point Coupee Port Commission and LCDA and are pleased that they have approved issuance of $1.25 billion in tax-exempt bonds. We believe this is an outstanding opportunity for BioNitrogen to grow and apply its patented and proven technology to an additional five plants. We are confident that the current and growing demand for urea made domestically from biomass will be easily absorbed by the market."
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.