- Analyst finds company well-positioned in emerging biofuels market -
Los Angeles, CA – September 16, 2008 – OriginOil, Inc. (OTCBB: OOIL), the developer of a breakthrough technology to transform algae, the most promising source of renewable oil, into a true competitor to petroleum, today announced that Beacon Equity Research has initiated coverage of the company with a “Speculative Buy” rating. The OriginOil Beacon Equity Research report is available as a download (PDF).
“OriginOil is well-positioned in the emerging biofuels market because of the advantages of its technology,” writes Beacon analyst Victor Sula, Ph.D. in the report. “The company is developing a complete algae growth and oil extraction system that is also safe and energy-efficient. It enables a continuous oil producing industrial process and addresses the challenges that have limited the prospects for algae-based biofuels until now.”
OriginOil’s proprietary system is an industrial, scalable process for continuous algae growth and extraction of oil. In a self-contained module, the Helix BioReactor™, algae is cultivated around a rotating vertical shaft which allows it to grow in multiple layers and facilitates the delivery of the nutrients it needs, CO2 and intermittent light in the appropriate spectrum. The oil is then extracted by breaking down the algae cell walls using the company’s Quantum Fracturing™ technology, a chemical-free microwave process. The complete system is modular, scalable and portable.
“Biofuels feedstock such as corn and sugarcane often destroy vital farmlands and rainforests, disrupt global food supplies and create new environmental problems,” said Riggs Eckelberry, OriginOil CEO. “Our unique technology, based on algae, is targeting at fundamentally changing our source of oil without disrupting the environment or food supplies.”
OriginOil has developed a laboratory prototype that will be expanded for use in its pilot and full-scale production systems, Eckelberry said. The company’s business model is based on licensing its technology to fuel refiners, chemical and oil companies, as well as entering into partnerships with biofuels producers and support organizations, he said.
According to Clean Edge research, the global biofuels market will grow from $15.7 billion in 2005 to $52.5 billion in 2015. As a next-generation biofuels feedstock, algae can yield 30 times more energy per acre than crops such as soybeans, the Beacon report said. The biofuels produced by the OriginOil system can replace petroleum in various applications such as diesel, gasoline, jet fuel, plastics and solvents. By displacing fossil fuel use, OriginOil’s process also helps producers garner saleable carbon credits, the report concluded.
About OriginOil, Inc.
OriginOil helps algae growers extract oil from algae for use as a feedstock for the commercial production of transportation fuels, chemicals and foods. In a single step, our breakthrough technology efficiently dewaters and breaks down algae for its useful products, overcoming one of the greatest challenges in making algae a viable replacement for petroleum. As a pioneer and the emerging leader in the global algae oil services field, OriginOil supports its core algae extraction technology with an array of process innovations for some of the world’s most successful algae growers and refiners, just as pioneers like Schlumberger and Halliburton have done in the oilfield services industry. To learn more about OriginOil®, please visit our website at www.originoil.com.
Safe Harbor Statement:
Matters discussed in this press release contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this press release, the words "anticipate," "believe," "estimate," "may," "intend," "expect" and similar expressions identify such forward-looking statements. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements contained herein. These forward-looking statements are based largely on the expectations of the Company and are subject to a number of risks and uncertainties. These include, but are not limited to, risks and uncertainties associated with our history of losses and our need to raise additional financing, the acceptance of our products and technology in the marketplace, our ability to demonstrate the commercial viability of our products and technology and our need to increase the size of our organization. Further information on the Company's risk factors is contained in the Company's quarterly and annual reports as filed with the Securities and Exchange Commission. The Company undertakes no obligation to revise or update publicly any forward-looking statements for any reason.
