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.