Letter to Shareholders N-Viro International’s Most Important Asset is the Alternative Energy Source N-Viro Fuel™

The N-Viro Fuel™ technology is a process that converts wastewater residuals and other bio-organic products into an alternative energy fuel product. This process was patented by N-Viro International Corporation via a group of patents owned by the Company. Development of this technology group from concept to commercialization has been an involved and time-consuming process. In order to successfully accomplish our goal of full commercialization, we have followed a strategic plan and have taken progressive steps to aid the implementation of the technology.

Our strategic plan is multi-dimensional. The success of the plan requires the Company first demonstrate the effectiveness and scalability of the patented processes. Second, we must prove the cost-effectiveness of our process and our ability to operate an N-Viro Fuel™ facility profitably. Third, we need to show the ability to convert waste organics into a valuable fuel product safely, effectively and within environmental and regulatory requirements. Fourth, we must establish an end market for the N-Viro Fuel™ by identifying electrical energy producing companies to partner with on these projects. Finally, a full demonstration is required to generators of bio-organic wastes to show that our fuel process can provide a long-term and cost-effective disposal solution.

We believe N-Viro has been diligently adhering to this plan, and believe it is growing close to the accomplishment of these goals.

As a shareholder of N-Viro International, I want you to be aware of what the Company is doing, and explain how we are executing this plan. Since I accepted the position as CEO in 2006, successfully developing N-Viro Fuel has been the primary focus of the Company. We currently utilize our N-Viro Soil technology and have increased our revenues by growing and improving the efficiency of our current business. These revenues have given us the ability to invest in the development of N-Viro Fuel™ while protecting the value of the Company. Our Florida operation has experienced significant growth during the past few years and our intention is to evolve it into an N-Viro Fuel™ operation as soon as possible.

Let me describe some of the more obvious milestones we have met along the way. The initial test of N-Viro Fuel™ at Michigan State University provided initial proof: N-Viro Fue™  does work. N-Viro received a letter from the USEPA endorsing N-Viro Fuel™  as an alternative renewable fuel product.   Further development of N-Viro Fuel™ has required we find one or more power generating entities with multiple generating facilities to be development partners. We are currently marketing N-Viro Fuel™ to a power generating company that operates multiple power plants across the country. The relationship began at the Michigan State test burn in 2007. On September 9 and 10, 2011 this power generating company held their own test burn demonstration. I believe we have identified a partner. Along the way, we have attracted the attention of other potential generating partners, engineering firms and municipal entities who all envision N-Viro Fuel™ as a mutual development opportunity.

The mobile facility commissioned this year in Pennsylvania was a vital step in the development of our fuel process. YouTube visitors have seen its rugged and simple design and the production of N-Viro Fuel™ gathered to eventually generate electricity. This has never been done before. This facility has delivered the proof needed to move forward on a larger scale. We have successfully converted wastewater residuals into N-Viro Fuel™ on a small commercial scale, and have used the fuel product to generate electricity. We are making arrangements now to complete the work in Pennsylvania and commence development of a full-scale facility.

Our efforts in Pennsylvania have furthered our commitment to the development of N-Viro Fuel™ in a number of locations. Development of the first full facility will provide the template for additional facilities thereafter, and I expect will establish a new and exciting future for N-Viro. Next steps will require a comprehensive analysis of location-specific regulatory compliance as well as adaptation to each unique market. Our mission is to obtain long-term supply agreements and achieve facility installation. I believe we can accomplish these milestones in the near future.

Unlocking the potential of N-Viro has been and remains with the commercialization of N-Viro Fuel™. We have researched the market potential domestically and internationally. Beneficial reuse of waste products is a global goal which has too often been left unfulfilled. Over the past several years we have attended many meetings where N-Viro Fuel™ was the topic. We have begun submitting proposals using N-Viro Fuel™ both domestically and internationally. I know our technology fits broadly across our industry but I accept the fact that some markets are not ready yet for the technology we possess. This includes Toledo, Ohio. Recently, the administration within the City of Toledo chose to abandon even older Class A technology, and has declined to pursue the advanced treatment of biosolids. Despite a twenty-two year history with N-Viro and our stated willingness to produce N-Viro Fuel™ in Toledo, they have chosen to adopt a lesser form of treatment which was the subject of a letter entitled Toledo City Council that can be downloaded from our website on the home page under Latest News. Regardless of this decision, we will move forward and accomplish our goals unimpeded.

We have been clearly focused on our goals in the development of N-Viro Fuel™ and have been encouraged by our accomplishments. Having a strategic path before us and acknowledging our growth potential provides us continuous motivation. Being able to envision the future and knowing how far we have come provides the confidence in our ability to execute our plan.

The support we have received from our shareholders has been very much appreciated. Together, we expect great accomplishments for N-Viro International Corporation.

Sincerely,

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Timothy R. Kasmoch

President and CEO

N-Viro International Corporation

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About nvirointernational
N-Viro’s customer-driven solutions allow publically owned wastewater treatment facilities to leverage the strength of the company’s leading-edge processes, which include alternative fuel technology proven to reduce GHG emissions and advanced fertilizer products. Our manufacturing facility is in full scale operation producing considerable volumes of finished materials for a variety of customers.

2 Responses to Letter to Shareholders N-Viro International’s Most Important Asset is the Alternative Energy Source N-Viro Fuel™

  1. Bernard Kiesel says:

    Well stated. Shows how N-Viro is on the cusp of fulfillment.

    • Bernard,
      Thank you for your comments and we hope that you continue to follow the progress of N-Viro International on this company blog and the press releases we post on the website.

      Let us know if there is any thing you or others want to hear more about.

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