TORONTO, ONTARIO -- (Marketwire) -- 03/26/13 -- Solutions4CO2 Inc. ("S4CO2" or the "Company") (TSX VENTURE: SFC) is pleased to announce that it has executed a Project Development Agreement ("PDA") with Quinlan Brothers Ltd. ("Quinlan") to build a waste to co-products facility to extract oil containing eicosapentaenoic acid (EPA), docosahexaenoic acid (DHA) and astaxanthin from Quinlan's waste streams.
Quinlan is a Canadian processor and exporter of cold water shrimp, capelin, snow crab, mackerel, squid and turbot at its plant located at Bay De Verde, Newfoundland and Labrador. S4CO2 and Quinlan have entered into the PDA to build a commercial waste to co-products system that will be integrated with the existing Quinlan process. The system extracts oil from the shrimp by-product and enriches the EPA, DHA and astaxanthin in the oil.
Most shrimp by-products are either disposed in landfills at a dollar cost to the shrimp processors or discarded in the sea at an environmental cost. By utilizing the shrimp by-products in a waste to co-products platform the waste stream can be transformed from a cost to an additional revenue stream for the shrimp processors.
Under the terms of the PDA, both S4CO2 and Quinlan will complete the economic feasibility study prior to entering into a final agreement. In addition, the PDA sets out the principal terms that the final agreement is currently expected to incorporate. In summary those terms include the following:
1. Support the completion of an Economic Feasibility Study by March 31, 2013.2. Obtain Letters of Intent from off takers for the co-products by April 30, 2013.3. Source a toll processor for initial by-product processing beginning in the Spring of 2013 utilizing S4CO2's proprietary process.4. Market and develop a brand strategy for the co-products globally beginning in Spring of 2013 on a fee for service basis at a rate to be determined.
1. Support the completion of an Economic Feasibility Study by March 31, 2013.2. Provide a captive source of shrimp by-product in support of the Joint Venture beginning in the Spring of 2013.3. Obtain any necessary permits (air, water and land) required for the completion of the commercial plant at their Bay De Verde site.4. Operate and maintain the commercial plant beginning in the Spring of 2014 on a fee for service basis at a rate to be determined.
S4CO2 and Quinlan will jointly:
1. Create a new corporate entity that will be owned 50/50 as a joint venture.
Subject to the satisfactory completion of the economic feasibility study, S4CO2 and Quinlan intend to proceed to a final agreement by April 30, 2013.
"We are pleased to be partnering with S4CO2 in this innovative venture that offers an environmentally friendly revenue stream from our shrimp by-product," said Robin Quinlan, Vice President of Quinlan Brothers.
"We are delighted to be partnering with not only one of Canada's largest shrimp processors, but also a leading innovator in the use of all the components of their shrimp catch," said Randy Uens, Vice President Global Sales and Marketing of S4CO2.
Global Cold Water Shrimp Industry
Six species of cold water shrimp are caught in northern latitudes in the Atlantic and Pacific oceans. According to the Food and Agriculture Organization (FAO), cold water shrimp account for roughly 7% or 450,000 MT of the total global shrimp production of 6 million MT. Canada and Greenland account for an estimated 70% of global cold water shrimp landings followed by Norway and Iceland. This results in an estimated cold water shrimp by-product volume of well over 150,000 MT from Canada and Greenland.
In 2008, the northern shrimp fishery in eastern Canada received Sustainable Fishing Certification from the Marine Stewardship Council (MSC), an organization established in 1999 to improve the health of the world's oceans and create an international market for sustainable sea products. MSC certification represents a major accomplishment since harvesting northern shrimp is now recognized as sustainable throughout the world. This is the first Canadian fishery to obtain MSC certification.
Global Demand for Omega-3
For some time now omega-3 polyunsaturated fatty acids (PUFAs) such as eicosapentaenoic acid (EPA) and docosahexaenoic acid (DHA), have been regarded as beneficial for preventing and treating a number of health conditions ranging from cardiovascular disease to autoimmune diseases and mental health disorders (Shahidi & Miraliakbari, 2004, 2005), and recently its benefits to inhibit the development and growth of breast cancer tumours (MacLennan et al, 2013). Omega-3 PUFAs have anti-inflammatory, anti-thrombotic, anti-arrhythmic, hypolipidemic and vasodilatory properties (Simopoulos, 2007). EPA and DHA from fish oil have been shown in clinical studies to help support cognitive health, brain function (Haag, 2003), cardiovascular health (Kris-Etherton, Harris, & Appel, 2003; Oh, 2005), to help reduce serum triglycerides (Sirtori et al., 1998) and, in conjunction with conventional therapy, to help reduce the pain of rheumatoid arthritis (Volker, Fitzgerald, Major, & Garg, 2000).
The supply of omega-3 has traditionally come from fish oils and other marine based sources such as krill, and from commercial microalgae production. The global market for omega-3 in 2011 was estimated at $25 billion with a 2016 forecast of $34 billion according to the food industry market research company, Packaged Facts.
Global Demand for Astaxanthin
Astaxanthin has recently been identified as a powerful antioxidant and is quickly becoming a popular health supplement with the potential to prevent and treat several health conditions including neurodegenerative diseases (Nakagawa et al, 2011), diabetes (Naito et al, 2004), stress, inflammation and cardiovascular disease (Fassett & Coombes, 2009). It can also be used to improve the efficacy of muscle endurance, joint health, eye health and skin health (Keisuke et al, 2002).
The market for nutraceutical grade astaxanthin was estimated to be nearly $60 million in 2011 and is expected to grow to over $200 million by 2015 according to data from Frost & Sullivan.
About Solutions4CO2 Inc:
Solutions4CO2 is a Canadian company that develops innovative waste-gas, water, biomass to high-value co-product solutions using proprietary and licensed technologies under the trademarks Integrated Biogas Refinery ("IBR") and Bio-Extraction Process ("BEP"). The IBR integrates best in class technologies to convert various organic waste streams into high-value algae co-products. The BEP utilizes supercritical CO2 fluid extraction to extract high-value co-products from shrimp by-products. Solution4CO2's business model allows the company to participate in joint-venture projects with partners across the waste-to-high-value co-product value chain, or sell projects on a design, build, operate and transfer basis.
About Quinlan Brothers Ltd:
Quinlan Brothers Ltd. is a Canadian processor of cold water shrimp and snow crab at its plant located at Bay de Verde, Newfoundland and Labrador.
This news release may contain forward-looking statements that are based on Solutions4CO2's expectations, estimates and projections regarding its business and the economic environment in which it operates. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. Therefore, actual outcomes and results may differ materially from those expressed in these forward-looking statements and readers should not place undue reliance on such statements. Statements speak only as of the date on which they are made, and the Company undertakes no obligation to update them publicly to reflect new information or the occurrence of future events or circumstances, unless otherwise required to do so by law.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Manager Corporate Development
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