Cellulosic Ethanol Process Development Planned in Montana Summer of 2006. EthaNext Energy Development

EthaNext Energy Development http://www.ethanext.com Announces Licensing Agreement with Montana Microbial Products, LLC

A Montana-based group today announced plans to expand the development of a new process for developing ethanol. Ethanext Energy Development, LLC (EthaNext), a start-up based in Helena, MT announced that it has reached an agreement to license technology and intellectual property from Montana Microbial Products, LLC (MMP) in order to improve a process to economically produce ethanol from cellulosic materials.

EthaNext will work with MMP and others to further the development of a process that has been under study since 1986. The process uses a proprietary enzyme that breaks cellulose down into its starch and sugar components at low temperatures. It can be done on small a small or large scale basis, using wheat straw, grass straw, and various other agricultural waste streams. The process has been proven on a limited scale with grass straw. In tests, it is estimated that 60 gallons of commercial grade ethanol will be produced from every ton of straw, at an approximate cost of $1.05 to $1.16 per gallon.

According to Jerry Spencer, president of EthaNext, “We envision a process that can be scaled down to the farm or local co-op level, or scaled up to a 25 to 50 million gallons per year facility. The process being developed is something that can be done in a low-temperature environment, using plastic vats and traditional equipment.” Spencer mentions that one of the main by-products of the process is a high-protein animal feed made from residues left over when the process is complete. “The best location for such plants will depend upon the availability of raw materials such as straw as well as an easy-to-reach market for the high-protein animal feed by-products.”

EthaNext is currently seeking the funding required to run test batches of ethanol using Montana grown wheat straw, Montana grown barley, and other feedstocks. “We will setup and operate a small pilot-scale production facility in Montana this summer. We will use this facility to document the process and begin showing it to potential joint-venture partners and licensees,” stated Spencer. The firm expects to locate its first large-scale cellulosic ethanol production facility in Montana and expects to begin construction in 2007. “Our long-term goal is to build and operate ethanol plants, and to license this process out far and wide around the world.”

President Bush singled out production of ethanol using switchgrass and other cellulosic feedstocks in his State of the Union Address, and named it as one of the nation’s top-priorities. “This new process has the potential of revolutionizing America’s fuel habits,” said Spencer.

Best regards,
Jerry Spencer

EthaNext Energy Development, LLC

32 S. Ewing, Penthouse Suite

Helena, MT USA 59601

Voice: 406.442.3434

Fax: 253.550.9202

Email: [email protected]

Web: http://www.ethanext.com

The Next Generation of BioEthanol