PetroAlgae Update
12 February 2007
XL TechGroup ( AIM: XLT), the systematic architect and builder of an ongoing stream of high value new companies, is pleased to provide an update on the progress of its portfolio business, PetroAlgae LLC (“PetroAlgae”).
Construction is now complete on the four acre optimisation site in Florida and algae are currently growing in situ. Over the next few months, this site will enable PetroAlgae to test multiple growing and processing variables in order to maximise the oil yield, whilst also validating engineering processes and the scaleable nature of the modular production technology.
A second phase is now underway with PetroAlgae currently looking at potential locations for a 400 acre pilot production site. Further, much larger scale, production facilities, in excess of 10,000 acres, are expected to be in planning by the end of 2007, and in production soon after.
John Scott, CEO of XL TechGroup, commented: “The results from the commissioning of PetroAlgae's test facility have already exceeded our expectations and we believe this business has the potential to transform the gigantic global commodities markets which currently rely on petroleum based feedstock. E xploratory talks with a number of potential project financiers, joint venture partners and customers continue apace.”
The PetroAlgae Business Overview - February 2007 presentation is available to view and download in PDF format.
For further information:
| XL TechGroup Inc. | |
| John Scott / Harold Gubnitsky | Tel: +1 321 409 7403 |
| hgubnitsky@xltg.com | www.xltechgroup.com |
| Chris Munden, Director of Investor Relations | Tel: +44 (0) 20 7398 7720 |
| cmunden@xltg.com | |
| Nomura Code Securities | |
| Richard Potts, Corporate Finance | Tel: +44 (0) 20 7776 1200 |
| www.codesecurities.com |
XL TechGroup media enquiries:
| Abchurch Communications | |
| Heather Salmond / Gareth Mead | Tel: +44 (0) 20 7398 7700 |
| heather.salmond@abchurch-group.com | www.abchurch-group.com |
NOTES TO EDITORS
About XL TechGroup
XL TechGroup is in the business of significant value creation. Working with major international corporate and technology partners such as AES, Procter & Gamble and leading universities, XL TechGroup first identifies global unmet market needs and then targets and exploits these by the systematic creation of successful, disruptive technology businesses. These are built from scratch, and are then funded and developed by XL TechGroup through to the point of a trade sale or a stock market listing.
XL TechGroup's unique and proven methodology selects the best opportunities in order to create one-to-two new companies annually, where each company is expected to achieve a valuation of at least US$400 million within four years from its creation. While an XL TechGroup company might perform a stock market listing at an earlier point in this four year timeframe, XL TechGroup would retain its controlling interest and would continue to assist with the company's development.
XL TechGroup's companies to date are: AgCert International plc (www.agcert.com), TyraTech LLC (www.tyratech.com), DxTech LLC (www.dxtech.com), PetroAlgae LLC and QuoNova LLC.
XL TechGroup has also established GenXL LLC as a joint venture to capture the value of those prospects that do not quite meet the US$400 million, four year criteria but still demonstrate considerable potential worth . Over and above XL TechGroup's core business model, GenXL will review a significant flow of opportunities from both XL TechGroup and GEN3 in order to generate new companies, standalone product lines and technology licensing opportunities or an appropriate mix of these.
About PetroAlgae
PetroAlgae is utilizing a proprietary environmentally-friendly algae that generates an estimated two hundred times more energy per acre than traditional biofuel crops, together with a process by which the technology can cost-effectively produce renewable petroleum based products such as biofuel. PetroAlgae was created by XL TechGroup in September 2006 and is 95% owned by XL TechGroup.
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