Clean Power Concepts Signs Major Sales Agreement
REGINA, Saskatchewan, Jan. 13, 2011 /PRNewswire/ -- Clean Power Concepts Inc. ('Clean Power' or the 'Company'), (OTC Bulletin Board: CPOW), reported today that it has signed a significant long-term agreement with K.N.D. Feeds Ltd. ('KND') of Saskatchewan to market the company's crude canola oil and canola meal off-take on an on-going basis to an expanded base of customers on a global scale.
KND is a well-respected Saskatchewan based supplier to the livestock feed market, which has been in the feed/commodities sales business since the mid 1980's. Under this marketing agreement, KND has committed to market Clean Power's canola products. The agreement is comprehensive and has sales estimates of 400 metric tons of canola oil and 600 metric tons of canola meal off take per month for the next five (5) years. At current canola oil and meal off take prices this amounts to approximately US$616,900 per month, US$7,403,000 per annum or US$37 million over the next five years. The majority of this oil is intended for the fast growing animal feed market.
"We at Clean Power are fortunate to have the opportunity to work with such successful and reputable people as Ken Kuntz at KND," commented Mike Shenher, President and CEO. "We believe that expanding our sales network with partners like KND is enhancing our competitiveness and positioning the Company for further growth. In doing so we've significantly enhanced our ability to capitalize on global sales opportunities through this sales agreement," Shenher added.
"We have been working diligently in 2010 to execute our business plan – to build our infrastructure, expand our product line and establish meaningful, tenured and protected sales and distribution agreements with well established companies such as KND whose innovative sales focus and values fit our exacting criteria," concluded Shenher. "Today's announcement is pivotal for the Company as we turn our attention now in 2011 from supply and development, to targeted sales execution."
About K.N.D. Feeds Ltd.
K.N.D. Feeds Ltd.('KND') is located in Bjorkdale, Saskatchewan and has been in operation since the mid 1980's. KND facilitates sales of approximately 60,000 metric tonnes commodities per year and specializes in the livestock feed business. The company's CEO Ken Kuntz will be instrumental in assisting Clean Power in developing its product lines and sales channels.
About Canola
Canola is one of two cultivars of rapeseed or Brassica campestris. Canola seeds are used to produce edible oil which has lower levels of erucic acid than traditional rapeseed oils and is used to produce livestock feed because it has reduced levels of the toxic glucosinolates. Canola was originally naturally bred from rapeseed in Canada in the early 1970s, but has a different nutritional profile in addition to much less erucic acid. The name "canola" was derived from "Canadian oil, low acid" in 1978. The price of canola oil is indexed to contracts on the Chicago Board of Trade ('CBOT') soybean futures market and in winter tends to trade at a premium and in summer at par. Generally, canola trades on average at the approximate price of soy bean oil plus five percent. In 2007 worldwide production of canola was 51 million metric tonnes and production for 2010 is estimated to be 60 million metric tonnes of seed and 24 million metric tonnes of canola oil.
About Clean Power Concepts Inc.
Clean Power Concepts Inc. was incorporated in Nevada on October 17, 2005 and trades on the OTC-BB under the symbol CPOW. To implement expansion of our business in the environmentally friendly green energy industry we acquired 95.1% of General Bio Energy Inc. based on a share exchange concluded on April 29, 2010. General Bio was incorporated in Saskatchewan, Canada on February 14, 2006 and operates a fully integrated commercial oilseed crushing, bio-diesel refinery, and environmental lubricants manufacturing and bottling, and nutraceutical and food processing plant in Regina, Saskatchewan. The current plant has a crush capacity of 19.7 million liters of crushed oil annually. Its biodiesel fuel processor can produce up to 20 million liters of biofuel and biofuel additives and the crushing system can produce nearly 32.8 thousand metric tonnes of meal and protein related products for agricultural and aquaculture feedstock annually. The plant is capable of specialty and toll crushing a wide variety of oil seeds. General Bio's primary brand is: 'MOPO Environmental Lubricants' and other key trade names include: 'General Bio Health' and 'Spirit of Health', under which General Bio manufactures, distributes, and retails essential oils, camelina, canola, flax, and hemp, in various formats including capsules, gourmet cooking oils, and skin care formulations.
CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION
Safe Harbour Statement under the Private Securities Litigation Reform Act of 1995
Certain information contained in this press release, including any information as to our strategy, plans or future financial or operating performance and other statements that express management's expectations or estimates of future performance, constitute "forward-looking statements." All statements, other than statements of historical fact, are forward-looking statements. The words "believe," "expect," "will," "anticipate," "contemplate," "target," "plan," "continue," "budget," "may," "intend," "estimate," "project" and similar expressions identify forward-looking statements. In this press release, the statements, "...to market the company's crude canola oil and canola meal off-take on an on-going basis to an expanded base of customers on a global scale"; "KND has committed to market Clean Power's canola products...The agreement is comprehensive and has sales estimates of 400 metric tons of canola oil and 600 metric tons of canola meal off take per month for the next five (5) years...At current canola oil and meal off take prices this amounts to approximately US$616,900 per month, US$7,403,000 per annum or US$37 million over the next five years. The majority of this oil is intended for the fast growing animal feed market"; "We believe that expanding our sales network with partners like KND is enhancing our competitiveness and positioning the Company for further growth. In doing so we've significantly enhanced our ability to capitalize on global sales opportunities through this sales agreement"; and "Today's announcement is pivotal for the Company as we turn our attention now in 2011 from supply and development, to targeted sales execution," are forward-looking statements. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements, including, but not limited to, certain cost adjustments and/or delays beyond the company's control with respect to bio energy manufacturing operations, changes in the worldwide price of agricultural commodities, crude oil, and/or certain other commodities; regulatory, legislative, political or economic developments in the jurisdictions in which the Company carries on business; operating or technical difficulties in connection with bio energy manufacturing operations or development activities; employee relations; transportation logistics; and the unpredictability of risks involved in the newly developing bio energy industry. The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable law.
SOURCE Clean Power Concepts Inc.
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