Xethanol to establish Advanced Biomass Characterization Lab at Virginia Tech; renews research agreement on producing cellulosic ethanol

Kleanthis Economou

NEW YORK , July 11, 2007 (press release) – Xethanol Corporation announced the establishment of the Xethanol Advanced Biomass Characterization Laboratory at Virginia Tech, in Blacksburg, Virginia. The company also renewed its research agreement with Virginia Tech that is focused on developing efficient means of producing ethanol using cellulosic feedstocks. The research is led by Dr. Foster A. Agblevor, Associate Professor in the Department of Biological Systems Engineering.

Xethanol also announced the loan of more than $200,000 in specialized laboratory testing equipment to Virginia Tech as part of its existing research partnership. The equipment comes from the company's multiple science laboratories.

The partnership, first established in 2005, seeks to find methods of producing ethanol from cellulosic biomass by focusing on four areas: steam explosion for pre-treating the biomass; advanced enzymes for hydrolyzing steam exploded biomass; a composite predictive model coupling with economic analysis; and finally scaling up of steam explosion, hydrolysis and fermentation.

The equipment loan includes an array of scientific testing and evaluation devices, such as autosamplers; calorimeters; an infrared spectrometer; a laser particle counter and other equipment.

Xethanol President and CEO David Ames said: "Our commitment to Virginia Tech is stronger than ever, as we enter into another yearlong agreement aimed at obtaining the best possible research and development work from a world-class university composed of distinguished experts and dedicated scientists. Dr. Agblevor is regarded as one of the leading researchers in cellulosic ethanol. I have seen his dedication first hand at Virginia Tech and I look forward to further advancements in this important area of research. Cellulosic is clearly the future of the ethanol industry.”

Dr. Agblevor of Virginia Tech commented: “For efficient product research, development, and manufacturing there is a need for a high quality laboratory to support the activities of the organization. Thus, the establishment of the Xethanol Advanced Biomass Characterization Laboratory at Virginia Tech will not only speed up research and development of new products for the company, it will also be used to improve the quality of products already in the pipeline. Rapid screening of feedstocks which are critical for both cellulosic ethanol and other bio-based products can be readily accomplished at this laboratory.”

In addition to its work with Virginia Tech, the company also has research agreements in place with other leading national institutions including: the National Renewable Energy Laboratory (NREL) in Golden, Colorado; the Energy and Environmental Research Center (EERC) in Grand Forks, North Dakota; and the Forest Products Lab of the US Department of Agriculture (USDA) in Madison, Wisconsin.

About Xethanol Corporation

Xethanol Corporation is a renewable energy company focused on alternate energy products and technologies as well as producing ethanol and other co-products. The company is developing and executing a multi-pronged business strategy:

* a technology strategy in which it works with leading scientists to license, acquire and commercialize innovative technologies in alternate energy;

* a production strategy in which it owns and plans to develop ethanol and gasification plants; and

* an investment strategy in which it owns and seeks to acquire majority or minority positions in alternative energy businesses that include Advanced Biomass Gasification Technologies, Inc., which holds patents and know-how related to lignin and biomass gasification, and H2Diesel Holdings, Inc., a development stage company that holds an exclusive license for North America, Central America and the Caribbean to proprietary technology for the manufacture of an alternative biofuel.