HOLLYWOOD, Florida, December 5, 2013 /PRNewswire/ --
Alternative Fuels Americas, Inc. (OTCQB: AFAI), an advanced biofuels company, confirmed the extension of 150 agreements with private landowners in Costa Rica, providing immediate access to sufficient raw material for up to 2 million gallons of biodiesel annually and accelerating the timeline to revenue. At full capacity the Company's initial Costa Rican model calls for scalable refining operations capable of producing 6 million gallons annually (roughly $22.7 million in revenues). The Company has already secured sales of $14 million through offtake agreements.
The Company's wild feedstock program was developed to provide readily accessible low-cost raw material for biodiesel production, particularly as Company owned Jatropha plantations mature. AFAI conducted an extensive satellite and aerial photography surveys throughout Costa Rica, determining the areas with the highest concentrations of wild feedstock. The team of representatives then approached landowners with an agreement allowing AFAI access to the feedstock on their land. The Company has identified additional regions with high concentrations of wild feedstock and expects to expand the program.
"These contracts successfully conclude the third phase of our four phase development plan," commented CEO Craig Frank. "Our first phase was to complete agricultural trials so we have our own, stable supply of feedstock. Our second phase was to sign offtake agreements to demonstrate market interest. Now we have the raw material contracts we need to quicken our path to revenue. We believe this accomplishment further demonstrates both our capacity and dedication to achieving our goals."
"AFAI's entire approach has been to construct the elements of successful operations alongside distinctive strategies that mitigate risks typically associated with biofuel companies," continues Mr. Frank. "Bloomberg Biofuels cites the importance of offtake agreements, we have agreements marking $14 million in revenue. Biofuels Magazine cites the importance of secure, low cost raw material, and we have our own fields and our unique wild feedstock program. We will continue to set and reach milestones recognized by our experienced team and industry experts as the stepping stones of success".
AFAI has 4 offtake agreements totally 3.7 million gallons. All buyers are based in Costa Rica. The revenue potential exceeds $14 million. The Company expects to expand its sales program.
AFAI cautions investors that our planned operations are subject to additional factors currently not certain, including our obtaining sufficient financing, profitably producing oil and the satisfaction and enforcement of our supply and sales contracts.
AFAI (OTC-QB: AFAI) is an alternative energy company pioneering a "seed to pump" vertically integrated biodiesel process and the development of above ground oil fields in Central America as part of its staged entry into a global market forecasted to exceed $500 billion by 2019.
For more information, visit http://www.alternativefuelsamericas.com
Forward Looking Statements
This press release includes statements that may constitute "forward-looking" statements, usually containing the words "believe," "estimate," "project," "expect" or similar expressions. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, acceptance of the Company's current and future products and services in the marketplace, the ability of the Company to develop effective new products and receive regulatory approvals of such products, competitive factors, dependence upon third-party vendors, and other risks detailed in the Company's periodic report filings with the Securities and Exchange Commission. By making these forward-looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release.
Contact Investor Relations: +1-561-210-7664
Alternative Fuels Americas, Inc.
SOURCE Alternative Fuels Americas, Inc