BioJet Corporation (formerly JatrophaBioJet) ( www.biojetcorp.com ) and E85 LLC jointly announced today that they have executed a Bio-SPK forward contract for the sale by BioJet and the purchase by E85 of 4 million barrels of aviation bio jet fuel. "Bio-SPK" is now the proper aviation industry term for bio jet fuel and the fuel delivered under this contract will meet ASTM International specifications. Other than quantity, the terms of the contract were undisclosed.
BioJet CEO Mitch Hawkins said: "This contract is a milestone in the developing international process of providing bio jet fuel to the commercial aviation industry. To our knowledge, it is by far the largest sale of bio jet fuel to date and demonstrates the commercial viability of our value-chain integration model. It also represents a major step for our company in achieving our goal of providing 30 million barrels of bio jet fuel annually."
Hugh Canady, Chairman of E85 stated: "E85 is very pleased to participate as an early adopter and first-mover in the enablement of the worldwide aviation bio jet commodity chain. We especially appreciate the innovative price indexing which BioJet has worked out. It falls in line with our philosophy of transparency in pricing of all our oil transactions. Along with BioJet, we believe in the Principles of Sustainability and hope to become a significant player in world aviation's bio jet business." He went on to say that European Union mandates to reduce climate change have been announced which are now slated to affect approximately 4,000 aviation operators and provide bans at EU member airports for aviation operators, including military, which do not comply.
Both companies expect demand for aviation biofuels to exceed 280 million barrels annually. BioJet Corporation's objective is to be an international leader as supply chain integrator in bio jet fuel for aviation. This fuel is now properly referred to as Synthetic Paraffinic Kerosene (Bio-SPK). Bio-SPK is being certified for commercial use by the American Society for Testing and Materials International (ASTMI) who estimates that certification will be complete by the end of 2010.
Hawkins also commented: "The primary issue in any biofuel is the feedstock. BioJet is fundamentally agnostic with regard to feedstocks and is committed to utilizing any and all sustainable and economically viable feedstock in the fulfillment of its mission. These include Jatropha, Camelina, Algae, and Designer sources. That said, we believe that today and for the next several years, Jatropha will be the credible, prime feedstock. Hence, we already control millions of barrels of jatropha feedstock."
BioJet, along with its partner South Pole Carbon Asset Management (Zurich) ( www.southpole.com ), also utilizes its formidable carbon resources to provide the solution to the very large related carbon offset opportunity, believed to be in excess of 660 million metric tons of CO2 per year from worldwide aviation.
