Development of Practical Torrefaction Reactor

In August, 2009 ForesTech Energy (“FTE”) entered into a Research and Development Agreement (“RDA”) with TSI, Inc. (“TSI”)(, collectively the Torreactor ™Torrefaction Team (the “Team”) to research and develop the technology and process for torrefaction and its application to the production of torrefied wood pellets for consumption by utilities or others wanting a highly calorific renewable source fuel. ForesTech Energy is a US based developer of wood fuel pellet mills and TSI is a supplier of large industrial drying equipment, serving the engineered wood and biomass industries.

Since the execution of the RDA the Team has accomplished the following:

●      Built a reliable, scalable, demonstration size prototype Torreactor ™ capable of producing one ton of torrefied material per hour.
●      Refined the equipment so that the process is automated, variable and scalable to respond to a wide range of product requirements.
●      Filed for a patent for the equipment/process.
●      Copyrighted the name Torreactor™.
●      Pelletized the torrefied wood.
●      Performed numerous tests on the torrefied wood, torrefied pellets, and the resultant emissions from the production process and from                           the torrefied output.

The Team believes that the TSI Torreactor ™  will offer the lowest capital cost and operating cost for the production of
torrefied wood. The process is scalable and easily controlled to produce a range of finished product to meet unique specifications of different users. 

FTE enjoys certain rights with respect to the RDA and is seeking an industry partner for the co-development of a torrefied wood fuel pellet mill on a site identified and controlled by FTE or another suitable site, or an existing pellet mill to
be determined.