BioNitrogen Receives $5 Million Loan Commitment in an Agreement to Purchase Land in Taylor County, FL
March 10 2014 - 10:37AM
Marketwired
BioNitrogen Receives $5 Million Loan Commitment in an Agreement to
Purchase Land in Taylor County, FL
Company Will Receive Over 50 Acres in Land From Taylor County
Development Authority to Be Used Toward Plant
WEST PALM BEACH, FL--(Marketwired - Mar 10, 2014) - BioNitrogen
Holdings Corp. (PINKSHEETS: BION), a cleantech company that
utilizes patented technology to build environmentally-friendly
plants that convert biomass into urea fertilizer, announced today
that it reached an agreement to purchase for $1 over 50 acres of
land in Taylor County, FL from the Taylor County Development
Authority ("TCDA"). Under the terms of the agreement, the TCDA will
also furnish BioNitrogen with a $5 million loan to be used for
plant engineering and site development work to be repaid upon the
tax free bond closing of the plant. This is one of several
planned facilities in the State of Florida and the southeast
regional footprint for BioNitrogen.
Located in Perry, FL, this location is ideal for a BioNitrogen
plant, because it is well located for feedstock and comes equipped
with access to rail services, trucking and vehicular
transportation, electricity, water, natural gas and telecom
services. Closing of the land purchase and loan is expected to
occur as soon as practical.
As part of the agreement, BioNitrogen agrees to construct a
plant with an investment in excess of $200 million and provide a
minimum of 45 direct full-time employees in Taylor County. The
plant will produce approximately 200,000 tons per year of urea
fertilizer and use local solid waste biomass such as wood waste as
its feedstock. Closing of the bond and funding for this plant
is expected to occur within 180 days, subject to the timing of
approvals and government commitments.
"On behalf of the Taylor County Development Authority and Taylor
county citizens, we look forward to working closely with the
BioNitrogen management as they begin construction of the fertilizer
plant. Not only will the plant bring excellent, high paying
jobs to Taylor, but the plant builds on the County's development
plan designed to bring robust manufacturing industry to the County.
The construction of this new environmentally friendly fertilizer
plant in Perry is an exciting development and a great opportunity
for our local partners and community," said Jim Bassett, Chairman
of the Taylor Economic Development Council. "It will allow us to
utilize our local technical centers, including the local
award-wining institute for millwright and welding, and our local
work training programs."
"We are very excited to have secured this important property.
This is a critical development for BioNitrogen and provides us with
the land and access to resources we need as an initial step in
committing to build a plant in Taylor County," said Bryan Kornegay
Jr., President and CFO of BioNitrogen. "Funding from the Taylor
County Development Authority is central to the success of the
overall plant construction project and we are pleased to partner
with it. The County has done a tremendous job of providing
inducements and laying the path forward for state grants and
construction of a plant in this County, as well as creating a long
term partnership with us."
"The strong wood basket for feedstock, local technical centers
for an educated workforce and excellent access to rail and
utilities with minimal tie-in or up front capital costs provide
huge time and cost incentives for us at this site," said Ernie
Iznaga, VP Operations.
"The economic development rate offered by Duke Energy is an
aggressive recruitment tool that is a real game-changer for energy
intensive businesses like BioNitrogen," said Jeremy Susac, former
head of Florida's energy office and an energy attorney with Real
Energy & Environment Strategies based in Tallahassee,
Florida.
In addition to negotiations in Taylor County, BioNitrogen is
continuing its negotiations in Florida and elsewhere to construct
similar facilities with similar economic impact. Further
details on other sites are forthcoming. Today's news in Taylor
County is great news and enables BioNitrogen to take one step
closer to doing business in Florida.
"Simply stated, we are thrilled to be working on sites in
Florida served by world class utilities companies. The Florida
utilities at Taylor and other sites have taken a very proactive
approach to keep us focused on doing business in the State of
Florida and we look forward to finalizing interconnection
agreements with them shortly, once the state's economic development
office carries through with its incentive packages," said Bryan
Kornegay Jr. "But, for the sake of clarity, we haven't lost focus
on promising sites in other states -- most notably Louisiana."
About BioNitrogen Holdings Corp
BioNitrogen Holdings Corp. (PINKSHEETS: BION) is a cleantech
company that utilizes patented 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.
Contact Adam Friedman Principal Email Contact 917-675-6250
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