ABG changes name, direction, wins $7.7m contract

Australian Biodiesel Group signs first contract for renewable energy and related infrastructure products in North America

Australian Biodiesel Group (ABG) of Narangba has signed its first contract for renewable energy and related infrastructure products in North America.

PW Strategy Management (PWM) of Calgary, Alberta, Canada, has executed a two-year contract for renewable energy and related uninterruptable power supply (UPS) products for three locations in North America.

The fiscal 2009 contract revenue is $3.757 million. Estimated fiscal 2010 revenue is $3.95 million.

The contract between PWM and ABG calls for installation of Solverdi technology sold and operated by ABG under an exclusive worldwide licence. Revenues from the project installation and agreement begin in April of this year.

PWM Chief Executive Robert Thompson says the company looks forward to the energy opportunities with ABG, which include renewable energy, process steam and managed facility abilities to replenish UPS demands with clean renewable energy.

"It will also lower overall operating expenses at the installed facilities, while meeting green energy mandates," he adds.

The Solverdi technology will include a solar cracking (thermal) system and renewable electricity that will be operated, maintained and serviced by ABG.

ABG will retain 65 percent of all carbon credits created by the three locations, and PWM will retain the remainder for the term of the contract, which is renewable for three consecutive terms.

The Queensland company will retain all tax and renewable energy credits under the terms of the agreement.

Coinciding with the announcement ABG shareholders today approved a change in the company's name, a new direction to become a broader renewable energy business and an issue of shares to a US group in exchange for ownership of new waste-to-energy technology.

The company's new name is to be Solverdi Worldwide, recognising the company's acquisition of the worldwide licence of the Solverdi waste-to-energy technology.

The company has acquired the Solverdi licence from the US-based White Mountain group, which will ultimately own 61.6 percent of the company.

The Solverdi process involves giving the company's relatively new Brisbane-located biodiesel plant an expanded capability to convert a wider range of materials into economic biofuel and electricity, with a wider range of feedstocks including grease trap waste and municipal waste water.

Consequently the economics of the entire operation are improved, with lower feedstock costs and more widely marketable renewable energy products.

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