More encouraging progress. Here is their latest Investor Bulletin from their web site:
INVESTOR BULLETIN
November 18, 1998
TO OUR INVESTORS:
SUBJECT: MAJOR MILESTONE ACHIEVED ON THE ROAD TO COMMERCIALIZATION OF BIODESULFURIZATION
The purpose of this bulletin is to provide our shareholders and other interested investors with an understanding of a significant development in our drive to commercialize Energy BioSystems' proprietary process that removes sulfur from petroleum products. Our intent is to become a major economically productive solution in reducing air pollution that faces every industrialized country in the next century.
Energy Biosystems has demonstrated a commercially viable level of catalyst longevity in its process for biodesulfurization (BDS) of diesel fuel. As publicly announced by EBC's scientists and engineers in October of 1997, "Longevity" is one of only three critical performance parameters for commercialization of EBC's biocatalyst system. The other two parameters are the actual level or rate of catalyst activity, and the extent or depth of desulfurization.
Advances in both catalyst and process design were instrumental in obtaining more than a ten-fold improvement in catalyst longevity. This is a critical parameter for any cost-effective refining process; including our programs for diesel fuel, as well as work on gasoline under a grant from the DOE with joint support from the Coordinating Research Council (CRC). The automotive and petroleum industries support CRC and the two industries are interested in reducing sulfur in vehicle fuels. EBC was chosen to work on the gasoline program at the recommendation of CRC.
The longevity parameter is also critical to commercial production of EBC's new industrial chemical family HPBS (hydroxy phenyl benzene sulfinate). Importantly, this particular BDS based process, while using our full core biocatalyst technology, does not require the same higher levels of catalyst rate and extent as required in BDS of diesel fuel or gasoline. Thus, it offers the potential opportunity for profitable commercialization either as a stand alone second business or as a very practical means to dramatically reduced BDS fuel costs.
As we advised you in the Spring of 1998, we expected a material and independently verifiable technical advancement before the end of this year. Our senior technical management, Dr. Dan Monticello, VP Research & Development, and Dr. Mike Pacheco, VP Process Development, attribute our accelerated technical progress to the discovery of important synergy between the biocatalyst and the process. They have utilized process conditions which take full advantage of the unique characteristics of one of EBC's most advanced biocatalyst strains. The new catalyst and process conditions result in growth and regeneration of this biocatalyst within the actual BDS process. Drs. Monticello and Pacheco note that achieving the longevity milestone significantly reduces the quantity of biocatalyst required to remove sulfur from diesel fuel. EBC is also making very good progress in improving the reaction rate and extent parameters for its core biocatalytic process. From this success, confidence is strong that we will reach commercial levels on rate and extent during 1999. This timing will clearly meet market demands for design, engineering, and construction to satisfy new sulfur regulations scheduled in Europe, the US, and other industrialized countries.
This news is especially encouraging to Petro Star Inc., EBC's first licensee of the BDS technology. "These technical advancements and the positive results from the M.W. Kellogg/EBC scoping economics study justify Petro Star's decision to move forward in requesting bids for the detailed engineering of the BDS unit for our Valdez refinery. Although the final decision to start engineering and construction will require all three critical parameters be met, EBC's rate of technical progress gives us a high degree of confidence that our timeline for commercialization can be achieved," says James Boltz, VP Engineering at Petro Star Inc.
We are pleased that we have made very material technical advancements this year and have achieved the major milestone we set in place last spring. We want to make sure you know about our progress and gain a better understanding of its meaning.
Development of leading edge technology often makes for difficult communication on the status of progress. Achievement of major milestones makes it a good bit easier. Perhaps, a good analogy is that the foundation, although not readily visible, is very well established. Furthermore, the substance of the commercial structure is now apparent as we move toward commercial viability.
If you wish to access Energy BioSystems' internet home page for additional information, our address is energybiosystems.com If you have any questions, please do not hesitate to contact Paul Brown, Chief Financial Officer, or me. For your convenience, you may use our corporate e-mail address: info@energybiosystems.com.
Sincerely,
William E. Nasser
Chairman, CEO and President |
