Biodiesel and Ethanol

Nova Biosource Fuels Passes New Quality Tests for Biodiesel

November 21, 2008

HOUSTON --- Nova Biosource Fuels Inc., a refiner and marketer of biodiesel, announced it has successfully passed newly required quality tests for more than a year.

Recent changes in standard specifications for biodiesel fuel blend stock (B100) include mandatory compliance for biodiesel to meet cold soak filtration requirements. The test subjects the biodiesel to a soak period at cold temperatures, re-warms the fuel, and then filters the biodiesel through a 0.7 micron filter. The test is a qualitative evaluation meant to replicate performance of the biodiesel in cold climates.

Nova's ability to pass the test requirements ensures that the company is "well positioned to immediately contribute to the demand that will be created by the 2009 biodiesel mandate, which requires domestic usage of 500 million gallons of biodiesel next year," the company said.

"Nova's patented process has always focused on producing high-quality biodiesel," said Kenneth Hern, chairman and CEO of Nova. "The new ASTM Cold Soak Filtration Test is a hurdle for some companies, but Nova's biodiesel meets this requirement regardless of feedstock input used in our proprietary process."

The company said it continues to operate efficiently and conserve working capital while maintaining sustained rates of approximately 50 percent to 60 percent nameplate capacity at the Seneca refinery. During the month of October, 3 million gallons of biodiesel were produced at Seneca, bringing the cumulative total to over 14 million gallons produced to date.

"Additionally, Clinton County facility personnel, our vendors and our engineering and construction crews continue in their efforts to carry out repairs caused by the fire that occurred on September 30, 2008," the company said. "The timing of the repairs and restoring operations will be dependant upon available working capital and market conditions."

"We are diligently focused on obtaining working capital to achieve full production capabilities," Hern added. "Sustained operations at our flagship refinery in Seneca, IL remains our top priority and final repairs at Clinton County will likely occur at year end and may be combined with previously planned capital upgrades."  

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