XL TechGroup in option for a renewable replacement for petroleum based products
29 June 2006
XL TechGroup (AIM: XLT), the systematic architect and builder of an ongoing stream of high value new companies, announces that it has entered into a licensing option agreement with Arizona Science and Technology Enterprises ("AZTe"), the technology commercialisation arm of Arizona State University. This agreement is in relation to a unique algae and a scalable process by which the technology can cost-effectively produce renewable biofuel and other products.
This ground-breaking environmentally-friendly technology platform addresses a number of billion dollar markets. The algae has an estimated yield that is two hundred times greater than traditional biofuel crops such as soybean plants. Because of its high energy content, oil extracted from the cultivated algae has the potential to replace petroleum in many areas such as transportation fuel, plastics and personal care products such as soap and nutraceuticals. The market for diesel vehicle fuel in the US alone amounts to in excess of US$180 billion [Source: BioDiesel Board (2005)] while the detergent market is close to US$4 billion worldwide [Source: Frost & Sullivan: Global Fatty Acids Market (2005)].
Energy produced by this algae is carbon neutral in that is has zero impact on global carbon dioxide levels as greenhouse gasses are absorbed during its growth phase to offset any emissions. This technology platform enables any carbon dioxide emission, such as from industrial flues, to be captured as valuable algae derived oil. A further significant characteristic of the algae is its potential to bio-remediate human and agricultural waste water streams. These water sources can be used as an alternative food source for the algae which filter and clean the natural water systems thereby preventing other devastating algal blooms and a build up of heavy metals.
Peter Slate, CEO of AZTe, said: "Given XL TechGroup's strong track record in developing truly disruptive ecotech companies, we are delighted to be working with the Company on this exciting project. We anticipate a rapid development phase should the commercial validation process be as positive as we expect."
John Scott, CEO of XL TechGroup, said: "We believe this offers enormous valuation potential for XL TechGroup from a venture that offers a clean, renewable energy source at a price that is competitive with fossil fuels without the need for subsidy assistance. Our plan is now to complete our validation of the scalability and cost effectiveness of this disruptive technology and apply our proven business development methodology."
For further information:
hgubnitsky@xltg.com
www.xltechgroup.com
Arizona Technology Enterprises
clewis@azte.com
www.azte.com
XL Tech Group media enquiries:
heather.salmond@abchurch-group.com
www.abchurch-group.com
Notes to Editors
About XL TechGroup
XL TechGroup identifies unmet market needs in the Biotech, Ecotech and Medtech sectors and then systematically creates and develops successful disruptive technology businesses to exploit these needs. The Company has developed a unique proven method to rapidly bring companies from inception to liquidity, matching unexploited IP from a group of corporate and technology partners to the identified unmet market need. XL TechGroup employs its own predictive algorithm to ensure the market will rapidly adopt the identified solution and then moves to scale the company specifically created to exploit the opportunity.
Before forming XL TechGroup, the management team created substantial value for shareholders over a twelve year period, successfully exiting six technology businesses at an average market valuation of approximately US$500 million.
The listing of the first company created under the XL TechGroup banner, AgCert International, continues to validate the systematic approach to value creation.
AgCert International was created by XL TechGroup in May 2002 and is a global leader in the production and sale of agriculturally derived greenhouse gas emission reductions, with business in Europe, Asia, North America and South America. AgCert was listed on the London Stock Exchange in June 2005 and XL TechGroup maintains a 24.7% interest in AgCert. www.agcert.com
The second and third companies in the new generation of XL TechGroup businesses are:
TyraTech LLC, which was created by XL TechGroup in July 2004, is developing a new class of insecticides utilizing all natural active ingredients. TyraTech is able to quickly evaluate natural ingredient combinations by utilizing a patent-pending high throughput chemoreceptor screening process that accurately predicts effectiveness levels. TyraTech's development is progressing rapidly in both insecticidal and related human healthcare applications. TyraTech, which is 66.7% owned by XL TechGroup, is continuing discussions with companies in North America, Asia and Europe as well as numerous national public health programs about the licensing and distribution rights for its patent-pending formulations in relation to natural insecticide and personal care products. www.tyratech.com
DxTech LLC was created by XL TechGroup in July 2005, and is developing a unique micro-fluidic platform that replaces essentially all biological tests currently performed at reference laboratories with a fully-automated, point-of-care device. This technology has applications in significantly lowering costs and increasing efficiency for major pharmaceutical companies in their clinical trials, the provision of diagnostics in developing countries and delivering a new revenue stream for doctors in the USA. DxTech is currently 88% owned by XL TechGroup.
XL TechGroup has a number of other opportunities already at an advanced stage in its business creation pipeline, and expects to create one-to-two new companies annually that can each achieve a liquidity event worth at least US$400 million within four years from inception.
For further information, see www.xltechgroup.com
About Arizona Technology Enterprises
Arizona Technology Enterprises is the technology venturing company for Arizona State University. AzTE works with university inventors and industry to transform scientific discoveries into products and services. AzTE transfers technologies invented at ASU to the private sector by mining university research, prosecuting patents, negotiating licenses, and creating new technology-based ventures.
According to the Chronicle of Higher Education, AzTE ranked in the top ten in the USA in the following categories:
- number of inventions disclosed per US$1 million spending on research
- number of start-up companies formed per US$10 million spending on research
- number of US patent applications filed per US$1 million spending on research
For further information see www.azte.com
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