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Amiworld Reaches Agreement to Supply Biodiesel and Petroleum Diesel
Amiworld, an international energy company engaged in the production and distribution of diversified fuel products and services with a focus on emerging global economies, today announced it has reached an agreement with Odin Energy Corporation (Panama Corporation), a wholly-owned subsidiary of JASB of New York Corporation (Amiworld’s principal shareholder), to supply biodiesel and petroleum diesel to its planned mixing plant and to subsequently sell the mixed products.
Mr. Mamoru Saito, CEO of Amiworld, stated, “We greatly welcome the agreement we have reached with Odin Energy Corporation and its expansion efforts since it will facilitate our ability to mix biodiesel and petroleum diesel on site. This expansion will also enable Amiworld to meet the growing demand for specific mixtures and enable us to export our products to international markets. Amiworld anticipates additional sales of its products purchased by this affiliate and will also receive a sales fee equivalent to 2.5% of all sales, which Amiworld anticipates to be approximately $2.4 million per year.”
Odin Energy Corporation is in the process of negotiating the purchase of approximately 2.5 acres of land adjacent to land currently owned by Amiworld. It is anticipated that construction of the new mixing plant will be completed by the middle of 2009. Once completed the Odin Energy mixing plant will be capable of producing a number of biofuel blends, such as B5 – which is mandated in Columbia – for distribution to the Columbia Atlantic coast and other percentages such B7, B10, or B20 to meet the requirements of various national governments.
The new mixing facility is designed to utilize product from the Company’s biodiesel plant in Santa Marta, Colombia, which has a current output of 3,000 tons per month and is the only government certified biodiesel plant in Colombia, and from the Company’s petroleum diesel refinery, which has a current refinery output of 65,000 barrels of petroleum diesel per month. As previously announced, management anticipates production of the Company’s biodiesel plant to triple and its petroleum diesel plant to increase production by 55,000 barrels of diesel per month in the coming quarters. To ensure stable and increasing production levels at both refineries, Odin Energy Corporation intends to finance the purchase of the refineries’ raw materials thus securing the supply of input for the new blending facility.
Management of the Company noted that, if this business opportunity is successful, Amiworld will acquire a majority interest in Odin Energy Corporation during 2009 upon completion of due diligence and successful closing of the purchase of the land and initial private placement.
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