Agtec
A WHOLLY OWNED SUBSIDIARY OF BG&E DEDICATED TO PRODUCTION OF ENERGY CROPS

To support closed loop projects and pursue external market opportunities, BG&E has licensed the worldwide rights to the following patented intellectual property of the University of South Carolina Research Foundation’s germplasm and micropropagation technologies: US Patent 6,821,782: Sustained Totipotent Culture of Selected Monocot Genera, USCRF #00276; US Patent 7,303,916: Sustained Totipotent Culture of Selected Monocot Genera, USCRF #00276; US (serial number 11/800,719) and PCT (PCT/US2007/011008) applications filed May 7, 2007 pertaining to USCRF #00631 entitled Method for Micropropagation of Monocots based on Sustained Totipotent Cell Cultures, and Hungarian Patent Application P 05 00786 that covers the above technology patents and application. These rights are held & operated by AgTec Renewable Fuels LLC a subsidiary of BG&E.

The intellectual property rights described above apply to over 50 species of perennial grasses that do not produce a viable seed including Arundo donax, and Miscanthus giganteus, two of the world’s most productive potential energy crops. The technologies, developed by Dr. Lazlo Marton, (PhD, CBS Professor of Biology, Director of PSMP in Biotechnology Environmental Genetic Engineering) and Dr. Mihaly Czako, (PhD), both at the University of South Carolina, allow for the mass planting of sterile seed plants. The patented process involves the growing of thousands of plantlets in vitro that are then matured in bioreactors for mass row planting. Pre micropropagation farms were painstakingly accomplished vegetatively by hand reproduction which involved workers snipping pieces of the root and re- planting them to grow additional plants. This labor intensive and very slow exercise has until now severely limited the use of Arundo and Miscanthus as energy crops.

A cross licensing arrangement between PSG of Hungary and BG&E combines the embryogenic micropropagation technologies with PSG’s Fito-Bio-Reaktor patented technology (the “FBR”) to enable the production of up to twice as many plantlets in the same amount of time as current methods, assures that BG&E’s own biomass fuel needs are met and provides for the sale of biomass to others. The FBR is a plant tissue culture system using liquid media designed for quality, economy and simplicity of operation. The technology reduces labor inputs while resulting in higher quality plants at greater rates of multiplication of at least twice that of other currently available systems.

During the next 4 years BG&E and AgTec will develop the full potential of the USC intellectual property package in order to establish the fast growing high-yielding Arundo donax as the dedicated energy crop of choice.

Existing farming techniques, planting and harvest equipment are ideally suited for Arundo with planting done in a semi-automated fashion designed for quality, economy, and simplicity of operation using precision sensing agricultural management systems. Planting will be achieved in a semi-automated fashion designed for quality, economy, and simplicity of operation. The company will be using precision sensing agricultural management systems. Minimal fertilizer is only required at the initial planting.

Harvesting is in a manner similar to sugar cane and after cutting, the Arundo donax will immediately begin to re-grow and does not have to be replanted. The harvesting of Arundo will be an ongoing process once plants have achieved their first maturity. Arundo can either be harvested annually or bi-annually depending on production expectations and growing conditions.

Few pests have been reported on Arundo so the requirement for pesticides is therefore negligible or even nil in most cases.

Inherent to Arundo is its phytoremediation ability to remove toxic residues from pesticides, refrigerants, and industrial solvents present in the soil.

The planting, harvesting and fuel processing of our energy crops will be contiguous to the power plant, thus eliminating fossil fuel input and other problems.