Biodiesel Producer Safe Renewables Sets Financing Package for Growth

HOUSTON--Safe Renewables Corporation (SRC), a leading producer and marketer of biodiesel for transportation fuel and power generation, has completed agreements for a major round of commercial financing designed to enable the company to more quickly implement its aggressive growth program.

As one of the few companies producing commercial quantities of biodiesel in the United States, SRC uses a unique, proprietary process at its plant in Conroe, Texas that is capable of switching among multiple vegetable oil and animal fat feedstocks. It is the only biodiesel fuel supplier today that serves both the transportation and public power generation markets.

Financing Package

Arranged by Breakwater Investments of Los Angeles, CA, the financing package will give SRC access to up to $200 million in working capital and long-term financing. The first tranche is a $5-million convertible debenture lead by Aequitas Capital Management of Lake Oswego, OR. “Many of our transactions are focused in the alternative energy sector,” said Bob Jesenik, Aequitas Capital Management CEO. “It’s new, it’s complex, and it’s just right for our brand of hands-on advising, structuring and investing.”

Additionally, SRC has obtained working capital facilities up to $10 million initially from Marquette Commercial Finance of Fort Worth, TX. The facilities are designed to expand up to $200 million as the company grows.

“SRC, through its investment banking relationships with ARC Investment Partners and Breakwater Investments, is now in a position to bring its securities to the public markets in the United States and Europe,” said Jeffrey Kissel, SRC President and CEO. Kissel anticipates that the shares will initially be available to the public in mid-summer of 2007.

“This exceptional financing package puts our strategic growth program into high gear,” Kissel added. “Our company, with its proven technology and operations, is on the leading edge of the biodiesel boom that is clearly before us by mandate of President Bush, the US Congress, consumers of fuel and electric power, and common sense.”

Production Capacity Expands

In early 2006, SRC began a major upgrade and expansion of its Conroe, TX facility, designed to improve efficiencies, increase production volume, and add storage capacity. The expansion, currently being completed, will increase production from 24 million to 30 million gallons per year. SRC has developed a working modular facility design that can be readily manufactured and assembled.

One 40-million-gallon-per-year unit is fully permitted and scheduled to be completed at the Conroe facility in mid-2008, bringing production there to 70 million gallons per year. Additional 40-million-gallon-per-year facilities are in development, with new locations now being identified.

This modular plant design enables SRC to quickly and easily replicate efficient biodiesel production facilities in multiple markets. “This allows us to locate close to the customers and consumers that are using our fuel, providing a clear advantage,” Kissel said.

Focus on Texas: Largest U.S. Fuels Market

In 2007, SRC is focusing on expanding its already strong share of the market for biodiesel and blended transportation fuels in Texas, the largest fuels market in the country.

‘Green’ Electricity Generation

In addition to the transportation fuel sector, which has received the bulk of public notice, SRC supplies environmentally safe biodiesel fuel for green kilowatt production in Texas and throughout the nation. It has partnered with Biofuels Power Corporation to create the nation’s first biodiesel-fueled power station that provides green kilowatts for the power grid. From Hawaii to Maine, new government mandates are stipulating that utilities and others accelerate their efforts to generate electric power using renewable green fuel sources. Environmentally conscious power companies are increasingly meeting their electricity generation needs using renewable resources including biodiesel.

“Biodiesel production linked to power generation facilities provides a useful solution for regionalizing power production for municipal, industrial and military customers, and peak shaving backup for utilities,” Kissel concluded. “This combination provides a powerful solution for the increasing energy demands of our economy.”

About Safe Renewables Corporation

Safe Renewables Corporation (SRC) is emerging as a leading biodiesel producer and marketer in North America and has become a major enabler of the green energy revolution. It is currently one of the largest producers of pure biodiesel fuel (“B100”) in the country. Derived from renewable sources, biodiesel’s power and performance are comparable to standard diesel fuel, but with reduced levels of harmful emissions. Biodiesel, in its pure (B100) or petroleum-blended (B5-B20) form, can be used in conventional diesel engines with no equipment modifications. SRC produces biodiesel from soy, cottonseed, canola oil, and from animal fats. It applies the best technology to ensure consistent, high fuel quality meeting ASTM (American Society for Testing and Materials) standards. SRC is currently focused on supplying biodiesel to the transportation and power generation markets. More information at: www.saferenewables.com