Alliance Bio-Products, Inc. Comments on the Rising Value of Cellulosic Ethanol as it Makes Offer to Purchase its First Biofuel Production Plant


The Company's Purchase of Its First Production Plant Would Provide a Viable Opportunity to Meet Growing Capacity Demands and Become a Leading Supplier of High-Value Cellulosic Ethanol

WEST PALM BEACH, FL / ACCESSWIRE / June 21, 2017 / Alliance Bio-Products, Inc. (ABP), a subsidiary of Alliance BioEnergy Plus, Inc. (OTCQB: ALLM), today commented on recently published research regarding the growing market value of cellulosic ethanol. ABP is currently in negotiations to purchase a bioethanol plant in Southeast Florida that will increase its production capacity for cellulosic ethanol using its patented Cellulose to Sugar (CTS) conversion process.

A recent article from Biofuels Digest highlighted new data from PFL, the California Air Resources Board and the EPA, revealing that the value of cellulosic fuels has now reached $4.33 per gallon in the California market. The value has risen 59 cents, or 15.7 percent from $3.74 per gallon in the past 17 months, showing a steady increase in demand from this form of ethanol.

The EPA is required to establish a cellulosic fuels market that meets Congressionally-mandated levels through 2022, creating the potential for market expansion of up to 10 billion gallons over the next five years. One of the challenges in reaching this capacity goal however, has been within the current enzymatic and acid hydrolysis processes.

ABP's patented CTS technology provides a dry mechanical process that simplifies the extraction of cellulose and hemicellulose from organic waste materials by eliminating the use of enzymes, liquid acid, applied heat, pressure or hazardous materials. By reusing waste materials including agricultural waste, wood and paper chips, and by eliminating additional processing materials, production costs are reduced to only $0.91 per gallon of high value cellulosic ethanol.

The finalization of ABP's purchase and CTS retrofit of a bioethanol plant in Southeast Florida could significantly contribute to meeting the nation's production goals for cellulosic ethanol. Pending the completion of plant purchase, the eight million gallon per year (MMGY) plant will be expected to reach capacity in early 2018, potentially generating $25 million in EBITDA. Within a year, the plant will aim to double capacity to 16 MMGY, potentially generating $54 million in EBITDA in 2019 and will then seek to maximize capacity of 34 MMGY, generating $112 million a year in profits by 2021.

"The bioethanol market is growing rapidly due to its proven environmental and economic benefits. Within the bioethanol sector, cellulosic ethanol shows significant value," says Daniel de Liege, Chairman of Alliance Bio-Products. "By retrofitting the bioethanol plant in Florida with our CTS technology, we'll be able to secure a place as one of the nation's top cellulosic ethanol producers and providers. The CTS process will not only increase capacity, but it will keep production costs down to under $1 per gallon, increase value and ROI even further."

To continue to commercialization of its CTS technology for the production of cellulosic ethanol, the Company announced a funding opportunity through a 506(c) filing to raise $10 million for the purchase of an abandoned biofuel facility in Florida. For more information on that opportunity, please visit the offering page.

For more information on Alliance Bio-Products, Inc., pleasevisit its website.

About Alliance Bio-Products, Inc.

Alliance Bio-Products, Inc. was formed as a special purpose wholly-owned subsidiary of Alliance BioEnergy Plus, Inc. ("ALLM") to own and operate Bioethanol plants in the United States.

Utilizing ALLM's patented CTS process Alliance intends to retrofit existing ethanol plants with the mechnocatalytic cellulosic conversion process, transforming them into profitable renewable energy centers that are carbon neutral, waste free and protecting our delicate environment while providing energy and high value co-products. The CTS process enjoys a family of patents centered around the main U.S. patent # 8,062,428.2032.

Information in this document constitute forward-looking statements or statements which may be deemed or construed to be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The risks, uncertainties and other factors are more fully discussed in the Company's filings with the U.S.Securities and Exchange Commission. All forward-looking statements attributable to Alliance BioEnergy Plus, Inc herein are expressly qualified in their entirety by the above-mentioned cautionary statement. Alliance BioEnergy Plus, Inc. disclaims any obligation to update forward-looking statements contained in this estimate, except as may be required by law.

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SOURCE: AllianceBio-Products, Inc.