MD&ABuilding on prior, successful pilot study work completed by Koch Modular Process Systems (“Koch Modular”), in February 2024, Koch Modular commenced additional pilot testing at its Texas facilities. Koch Modular is a joint venture with Koch-Glitsch LP, one of the world's most prominentsuppliers of masstransfer equipment. Koch-Glitsch's parent company is Koch Industries, one of the largest privately held corporations in the United States.
The primary purpose of this work is to generate samples of modified base oil products requested by major offtake purchasers. The pilot study is expected to be concluded in May 2024, at which time, the Company expects to deliver additional samples to interested offtake parties. In addition to generating more samples, Koch Modular’s pilot studies on the MSU are expected to further validate feedstock properties, optimize yields of critical offtake products, and reconfirm the API properties of the Company’s base oil products, all of which will be critical to the Company’s ongoing discussions with offtake parties.