Ensyn initiates generation, sale of cellulosic RINs

Ensyn Corp. is pleased to announce that it has initiated the generation and sale of its first renewable identification numbers (RINs) under the renewable fuel standard (RFS) and that Ensyn's D7 cellulosic RINs have received quality assurance plan (QAP) certification.

Ensyn is the first company to generate cellulosic RINs under the U.S. EPA’s expanded definition of heating oil under RFS, which became effective in December 2013. Ensyn believes it is now the leading producer of cellulosic D7 RINs in 2014.

D7 RINs are generated by Ensyn by displacing petroleum heating fuels (including #6, #4 or #2 diesel fuel oil) in customers' boilers with Ensyn's RFO. RFO, essentially "liquid wood," is a cellulosic biofuel produced from non-food solid biomass including forest residues. RFO is used to displace petroleum fuels in heating operations and is also a renewable feedstock for conventional petroleum refineries for the production of gasoline and diesel.

Ensyn RINs have been assigned QAP status by Genscape Inc. Genscape's QAP Service is a comprehensive EPA-approved QAP provided to RIN generators and producers to assure the validity of RINs entering the market.

Ensyn's RIN generation is being led by the supply of 300,000 gallons per year of RFO to Memorial Hospital, located in North Conway, New Hampshire, under a five-year, renewable contract. This contract allows Memorial to fully displace their petroleum heating fuels with Ensyn's advanced cellulosic biofuel, reducing Memorial's greenhouse gas emissions from heating fuels by approximately 85 percent, and lowering their operating costs.

In addition, in early October Ensyn announced a seven-year renewable contract with Valley Regional Hospital in Claremont, New Hampshire for the supply of 250,000 gallons/year of RFO. Under this contract, the hospital intends to replace its entire heating fuel requirements with Ensyn's RFO. Deliveries are targeted to commence by April 2015.

RFO is being distributed in the US market by Ensyn Fuels Inc., Ensyn's wholly-owned subsidiary responsible for RFO and RIN sales and distribution.

"We are pleased to have generated and sold our initial D7 cellulosic RINs," stated Robert Graham, chairman and CEO. "Now that we have the mechanisms, pathways and qualifications firmly established, we can proceed with expanding our sales and RIN generation from existing capacity as well as from new projects and applications."

Ensyn expects to increase D7 RIN production as it secures additional contracts from existing capacity for RFO heating fuels and as additional production capacity of RFO is brought on line. In addition, as Ensyn completes commercial demonstration of its Refinery Coprocessing application and secures offtake contracts from refiners, it is anticipated that Ensyn's refiner partners will be generating D7 (diesel) RINs as well as D3 (gasoline) RINs.

Ensyn is executing its renewable fuels business in alliance with UOP, a Honeywell company. This alliance takes place through Envergent Technologies LLC, a joint venture between Ensyn and UOP. Envergent's role is to supply Ensyn's RTP conversion equipment to RFO production projects world-wide, with performance guarantees. In addition, UOP is supporting Ensyn in the commercial development of its Refinery Coprocessing business, including supplying refiners with delivery systems to integrate RFO into their refining operations.