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Ensyn Initiates Generation & Sale of Cellulosic RINs Under the RFS2 Program  

Monday, November 10, 2014


Ensyn RINs Are Awarded QAP Status

New York, New York – Nov 7, 2014 – Ensyn is pleased to announce that it has initiated the generation and sale of its first RINs (Renewable Identification Numbers) under the US Renewable Fuel Standard (RFS2) and that Ensyn’s D7 cellulosic RINs have received QAP certification.

Ensyn is the first company to generate cellulosic RINs under the US Environmental Protection Agency’s expanded definition of Heating Oil under RFS2, 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 Quality Assurance Plan (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/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%, 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 Dr. 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.”

Additional RIN Generation

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.

Alliance with UOP, a Honeywell company

Ensyn is executing its renewable fuels business in alliance with UOP, a Honeywell company. This alliance takes place through Envergent Technologies, LLC (Envergent), 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.

The RFS2 Program

RFS2 is a US statute promulgated under the Energy Independence and Security Act (EISA) and administered by the EPA, requiring US producers and importers of transportation fuels (Obligated Parties) to blend specified volumes of biofuels into their gasoline and diesel pools. RFS2 volume requirements came into effect in 2010 and are mandated through 2022. The production of mandated fuels generates RINs. If Obligated Parties do not meet their mandated volume obligations, they can purchase RINs from third parties and/or purchase waivers from the Federal Government.

RFS2 mandates provide for the majority of growth in liquid biofuel production until 2022 to be based on cellulosic biofuels. Cellulosic fuels generate D3 RINs for renewable gasoline and D7 RINs for renewable diesel.

About Ensyn Corporation

Ensyn is a producer of renewable liquid fuels and chemicals. Ensyn’s principal fuel product, RFO, is a renewable heating fuel and also serves as a renewable feedstock for conventional refineries for the production of transportation fuels. The company is expanding its RFO production capacity to meet demand. Initial capacity expansion has recently been completed at its facility in Renfrew, Ontario. This is being followed by new projects in Quebec, the US and in Aracruz, Brazil. Ensyn’s RTP® technology has produced over 37 million gallons of RFO™ since 1989, dedicated primarily to chemicals and heating fuels; the company is now executing a broader commercialization of its fuels in conjunction with key strategic relationships including UOP, a Honeywell company; Chevron Technology Ventures; Fibria Celulose (Brazil), and Felda Palm Industries (Malaysia).

Contact:
Ensyn RINs:
Sadie Sage
+1 (212) 251-3380
ssage@ensyn.com
Ensyn Fuels:
Lee Torrens
+1 (406) 490-9831
ltorrens@ensyn.com
Ensyn Corp:
Ian Barnett
+1 (647) 203-6588
ibarnett@ensyn.com

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