NEW YORK and HARBIN, China, March 7, 2012 /PRNewswire/ -- American Jianye Greentech Holdings, Ltd. (OTCQB: AJGH News), a leading developer, manufacturer and distributor of alcohol-based automobile fuel and civil-use fuel in China, announced today that it has reached a manufacturing and marketing partnership agreement with US Gulf Coast Energy Inc., a manufacturer of alternative, environmentally friendly, renewable biofuels in the United States.
Under the agreement, American Jianye and Gulf Coast Energy Inc. will jointly build a US blending factory in the state of Alabama, to manufacture and distribute 30 million gallons of alcohol-based fuel annually as phase 1 of the production plan. They will determine the size of the second phase of production based on the potential for market growth.
Both parties have agreed to the following conditions: American Jianye will be responsible for providing the financing, design, engineering, construction and production of the blending factory in Alabama. Gulf Coast Energy will be responsible for the marketing, licensing and providing the land property for the blending factory in Alabama. Upon reception of the initial $1 million in funding from American Jianye, Gulf Coast Energy will provide the production site for the blending factory as well as the permit letter from General Motor, issued to the new blending factory, which allows for the use of the E15 to E85 fuel in cars. Gulf Coast Energy holds that permit letter from General Motor for its current operation.
Mr. Haipeng Wang, Chairman and Chief Executive Officer, commented, "We are pleased to reach agreement with Gulf Coast Energy Inc. on a collaboration agreement that can enhance the production and sales of both companies. We believe that the marketing force and distribution network offered by Gulf Coast Energy combined with the additional value of American Jianye will make for a compelling selling proposition for operators that looks to stay abreast of consumer demand trends and is consistent with US government policy initiatives in the area of clean fuel technologies."
American Jianye notes that oil consumption in United States is increasing rapidly with favorable implications for demand for American Jianye clean fuel products that meet the need for clean and cost-effective alcohol-based automotive fuels. AJGH will refer to its collaboration agreement with Gulf Coast Energy as its "US production flagship" growth strategy designed to speed up the development of its clean fuel production and retail business in the United States. It is anticipated that American Jianye will expand its distribution network extensively throughout much of United States over the next several years through its existing expansion strategy, and the joint marketing with Gulf Coast Energy Inc. will help accelerate these expansion efforts particularly for retail automotive gas station operators.
About Gulf Coast Energy, Inc.
Gulf Coast Energy, Inc was founded with the intention and mission to "change the world, "through the manufacturing of alternative, environmentally friendly, renewable biofuels."
They have developed a unique approach to the manufacture of alternative fuels that takes advantage of the latest state-of-the-art modular process technology for converting biomass to ethanol and other carbon-based fuels such as diesel and possibly gasoline among others.
This patented technology takes advantage of the latest advances in carbon re-circulation and waste heat re-use to produce extraordinary yields, high energy efficiency, and superior quality biofuel products. Furthermore, the process is quite flexible in its ability to handle multiple types of feedstocks and is also able to produce a variety of different kinds of biofuels. We plan to utilize the abundance of wasted woody biomass (this would be considered "cellulosic" which is the currently fashionable phraseology) in the Southeastern United States. As we grow and expand, we will continuously assess the feasibility of using different raw materials and expanding our product spectrum. With a fully operational demonstration plant up and running at our Livingston, Alabama facility, we will be able to conduct ongoing research and development.
Additional information about the company is available at: http://www.gulfcoastenergy.net/
About American Jianye Greentech Holdings: American Jianye Greentech Holdings, headquartered in Harbin, China, is a leading developer, manufacturer and distributor of alcohol-based fuel. The company's alcohol-based fuels burn with higher efficiency and significantly lower toxic waste emissions than unleaded gasoline. The unique combination of catalysts in the fuel enhance fuel octane rating and engine power, inhibit the premature oxidation of the fuel, help remove sediment in the carburetor, and prevent the erosion of the engine cylinder surface. Additional information about the company is available at: www.americanjianyegroup.com.
Forward-Looking Statements: This release contains certain "forward-looking statements" relating to the business of the Company. These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions. Such forward-looking statements involve known and unknown risks and uncertainties that may cause actual results to be materially different from those described herein as anticipated, believed, estimated or expected. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website (www.sec.gov). All forward-looking statements attributable to the Company or to persons acting on its behalf are expressly qualified in their entirety by these factors other than as required under the securities laws. The Company does not assume a duty to update these forward-looking statements.
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SOURCE American Jianye Greentech Holdings, Ltd.