Fundraising and Brazilian MOU

Monday, December 19, 2011

TMO Renewables, a leading developer of a new process for converting biomass into fuel ethanol, today announces that it has completed a round of financing totalling £7.6 million from existing and new shareholders.

Taken in combination with £4.6m raised in January 2010, the proceeds will serve will serve as working capital as the company moves towards commercialisation.

Additionally, the company has been involved in detailed and positive discussions in Brazil. A senior delegation of ethanol plant owners and local officials from the state of Minas Gerais, in South Central Brazil, visited the Company's laboratory and PDU in Surrey earlier this year to see TMO technology in action.

Minas Gerais state, in South Central Brazil, has experienced an extraordinary level of growth in the sugar and energy industry. Today the state is home to 42 plants producing ethanol, sugar and electricity. This growth has encouraged a strong trend of new investment to use sugarcane in innovative processes, making it possible not only to improve the economics of the producers in Minas Gerais, but also to diversify their activities with products and solutions that are both more sustainable and environmentally sound.

Building on this visit, TMO has recently signed an MOU as a prelude to a formal agreement to implement TMO's technology in regional ethanol mills. This approach will make it possible to significantly increase the ethanol production in Minas Gerais without adding to the present sugarcane planted area.

The Brazilian State Secretary of Economic Development and the Brazilian Secretary of Science, Technology and Superior Education have committed to joining forces to seek partnerships with universities and private companies to further develop this opportunity.

Robert Parker, Acting CEO of TMO said: "We have seen commercial opportunities increase in number across the globe this year, with two partnership announcements in China and promising discussions in Brazil and an additional further potential market of scale, which we hope will move quickly towards contracts. I am grateful for the hard work of all at TMO who worked to achieve this.

"Against this backdrop of growing opportunity, we are grateful to our existing shareholders for their continued faith and support, and to our new shareholders, whom we welcome. The security of working capital will allow continued focus on reaching full commercialisation."

For further information please contact:

TMO Renewables Ltd
Gaye Bramwell

01483 303305

M:Communications
Elly Williamson
+44 (0) 20 7920 2339
Patrick d'Ancona
+44 (0) 20 7920 2347

A photograph of Robert is available from M:Communications on request.

TMO Renewables Limited 

TMO Renewables Limited is a world leader in the development of 'second generation' biofuels produced from biomass or biowaste rather than virgin crops. TMO has built theUK's first cellulosic ethanol process demonstration unit (PDU) which integrates all the necessary steps in a continuous ethanol production process. This facility has been operational since the summer of 2008.