LONDON, Oct. 5, 2007 (PRIME NEWSWIRE) -- Flex Fuels Energy, Inc's ("Flex Fuels" or the "Company") (OTCBB:FXFL) wholly owned subsidiary, Flex Fuels Energy Limited ("FFE Ltd"), announced today that it has entered into an Early Works Agreement ("EWA") with Lurgi Aktiengesellschaft ("Lurgi"), part of the Air Liquide Group, the foremost supplier of biofuel plant technology worldwide. Following completion of the EWA by Lurgi, FFE Ltd expects to appoint Lurgi as its Engineering, Procurement and Construction ("EPC") contractor for its Cardiff Biodiesel Refinery.
Under the EWA, Lurgi will provide detailed design and cost estimates for a fixed price EPC contract to deliver an integrated seed press / Solvent Extraction Plant ("SEP") and biodiesel refinery ("Integrated Plant"). The EWA will also provide a cost estimate for associated engineering works outside the scope of the fixed price works. This will also be managed by Lurgi on a cost plus fee basis as part of the prospective EPC contract. In addition, the EWA will produce all information required for the submission of Local Air Pollution Prevention and Control and Integrated Pollution Prevention and Control applications for the biodiesel refinery.
The Integrated Plant option has been enabled by the early grant of SEP planning approval, as reported on August 21, 2007. An internal review has now concluded that, compared to a phased development with seed press coming onstream ahead of solvent extraction and biodiesel production, this should offer an overall cost saving, greater certainty of execution and de-risk the offtake of raw oil likely from a phased development.
The EWA specification will also allow the Company to consider expanding the size of the proposed Integrated Plant prior to build, subject to feedstock and market risk assessments currently in progress.
Brian Barrows, Chairman of Flex Fuels Energy Ltd, commented: "I am pleased that Flex Fuels has secured Lurgi as it technology partner. They are a world leader in biofuel technology with an outstanding track record for quality and timely delivery. Lurgi has an excellent reputation with both banks and customers, providing FFE Ltd with a solid foundation for timely delivery of a best in class plant."
Peter S.J. Breit, Vice President of Lurgi A.G., commented: "We are glad to be selected by Flex Fuels as its technology partner. This year Lurgi has seen increasing activity in the U.K. biofuels market, driven by the demand expected as a result of the upcoming blending obligation. Flex Fuels is expected to implement this significant project and Lurgi will put Flex Fuels in a position to provide the market with a first class product produced from a plant with the highest reliability."
About Flex Fuels Energy, Inc.
Flex Fuels is a diversified company developing its wholly owned alternative energy business, FFE Ltd, and mining exploration activities in British Columbia, Canada. FFE Ltd is focused on delivering a vertically integrated BioEnergy operation in the U.K, building a "Farm to Fuel" value chain. Its ethical, environmentally friendly business is designed from the ground up to deliver real value to shareholders. Its products aim to reduce carbon emissions and contribute positively to the fight against Climate Change. FFE Ltd actively seeks to improve the environment in every stage of its business.
To find out more about Flex Fuels (OTCBB:FXFL), visit our website at www.flexfuelsenergy.com .
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About Lurgi
Lurgi is a leading international technology company operating in the field of process engineering and plant contracting. As the market leader in this field, Lurgi fulfills customers' demands for cost-efficient planning and construction of safe and profitable plants with the specified quality.
Forward-Looking Statements
The statements in the press release that relate to the company's expectations with regard to the future impact on the company's results from acquisitions or actions in development are forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The statements in this document may also contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, such statements should not be regarded as a representation by the Company, or any other person, that such forward-looking statements will be achieved. Since the information may contain statements that involve risk and uncertainties and are subject to change at any time, the company's actual results may differ materially from expected results. Flex Fuels Energy, Inc. disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. In light of the foregoing, readers are cautioned not to place undue reliance on such forward-looking statements.