Alternative Energy Sources Inc. has signed a letter of intent to acquire all of Flex Fuels USA Inc.'s outstanding capital stock and expects to sign a merger agreement by Sept. 15 that will given Alternative Energy access to Flex Fuel's proprietary ethanol production technology.
Flex Fuels has developed methods of producing cellulosic ethanol made from biomass waste streams rather than corn or sugar, making it less vulnerable to supply and price fluctuations and giving it the lowest cost position in the industry.
By merging with Alternative Energy Sources, Flex Fuels hopes to commercialize this technology.
Alternative Energy Sources, which develops, builds and operates ethanol production plants, plans to build the first cellulosic ethanol facility in the US.
Mark Beemer, Alternative Energy's CEO, said that by adding cellulosic ethanol to their portfolio in addition to the greenfield plants and carbohydrate based ethanol evaluation of sites, will provide great diversification to the company's future ethanol production base.
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