[news 2003 - 2004]

Queen's-discovered ethanol extraction process licensed to Xethanol Corp.

Oct. 19, 2004

KINGSTON, ON - A novel extractive fermentation technology for the production of ethanol has been exclusively licensed to Xethanol Corporation by PARTEQ Innovations, the technology transfer arm of Queen's University.

The patented technology, developed by Dr. Andrew Daugulis of the Department of Chemical Engineering at Queen's, allows for more efficient production of ethanol, a clean-burning renewable fuel used in gasoline blends to improve vehicle performance.

Created by the fermentation of sugars, ethanol has been difficult to produce efficiently because of its ability, once produced, to inhibit further fermentation. Dr. Daugulis discovered that the addition of a non-toxic solvent to the fermenter allowed for simultaneous fermentation and removal of ethanol and recovery and re-use of the solvent, reducing overall processing time and costs. The extractive fermentation process was piloted at Queen's with funding from Natural Resources Canada.

Xethanol will initially apply the extractive fermentation process at its Biomass Technology Centre in Iowa, a facility that processes fermentable sugars derived from food biomass.

"We are delighted to be working with Xethanol Corporation as they develop and commercialize this technology," says Anne Vivian-Scott, Director of Commercial Development at PARTEQ. "We believe that this method of removing ethanol during the fermentation process will increase production efficiency and greatly enhance the generation of valuable products such as ethanol. "

Dr. Daugulis's original research in ethanol extractive fermentation has led to the development of several other patented technologies, based on partitioning bioreactors, in areas of bioremediation and in the biosynthetic production of high-value molecules. Several of these technologies have been transferred to U.S. and Canadian companies via licensing agreements.

About PARTEQ Innovations:
PARTEQ works with Queen's researchers and the business and venture capital communities, helping to bring the benefits of scientific discovery to the public while returning proceeds to inventors and the university. Since 1987 PARTEQ has licensed more than 30 products generated by Queen's research, including treatments for cancer and male erectile dysfunction; systems for water testing and solar heating, North America's leading wheelchair restraint system; data mining software for drug discovery; and innovative laboratory equipment and gas analysers for teaching and research.

About Xethanol Corp.:
Xethanol Corporation is a biotechnology driven ethanol production company that seeks to become a leader in the emerging cellulosic biomass-to-ethanol industry. Their mission is to convert biomass that is currently being abandoned or landfilled into ethanol and other valuable co-products.

Contact:
Anne Vivian-Scott
Director, Commercial Development
P: 613. 533. 2342
F: 613. 533. 6853
E: avivianscott@parteqinnovations.com