New Generation Biofuels Holdings has announced that it has amended its license agreement with PTJ Bioenergy Holdings to receive royalties for revenue generated from the sale or licensing of New Generation Biofuels' products outside of the territories specified in the original agreement as well as additional commissions for sales assistance relating to its product outside the original territories.
In March 2006, New Generation Biofuels acquired the rights to its proprietary technology through an exclusive license agreement to commercialize this technology within North America, Central America and the Caribbean.
The Company's proprietary technology provides for the manufacture of alternative biofuel from vegetable oils and animal fats. Under the terms of this amendment, New Generation Biofuels will receive a 5% royalty fee from PTJ biofuel technology-related revenue outside the original territory specified in the initial agreement.
In addition, New Generation Biofuels will receive an additional 5% sales commission for customer introductions and sales assistance outside of North and Central America and the Caribbean.
PTJ is a joint venture between the inventor of the Company's proprietary biofuel technology, Ferdinando Petrucci, and the managing member of 2020 Energy LLC, the Company's largest shareholder, who owns approximately 29.5% of the Company's outstanding common stock.
"We look forward to working closely with PTJ to accelerate the adoption of our renewable biofuel worldwide and to collaborate on joint research and development efforts to continuously improve our product," said Cary Claiborne, President, CEO and CFO of New Generation Biofuels.
"This amendment now gives New Generation Biofuels the opportunity to generate revenue from the sale of our biofuel and/or the licensing of our proprietary technology anywhere in the world and reflects the success we have experienced testing and selling our biofuel in the United States to date."
According to a forecast prepared by the Food and Agricultural Policy Research Institute (FAPRI), the worldwide market for the production of biofuels is expected to grow to 26.6 billion gallons per year by 2012.
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