MagneGas Announces Significant Continued Improvement in MagneGas2 Production from Butanol Feedstock

TAMPA, Florida, July 31, 2017 /PRNewswire/ --

MagneGas Corporation ("MagneGas" or the "Company") (NASDAQ: "MNGA") a leading clean technology company in the renewable resources and environmental solutions industries, announced today that since the introduction of Butanol as a feedstock, further procedural and equipment improvements have been implemented yielding over a 150% improvement in MagneGas2® production rates and a 50% reduction in production costs.

As announced in April 2017, MagneGas has switched from soybean oil to butanol as a feedstock of MagneGas2® which yielded immediate improvements in cost and productivity. Each feedstock behaves differently and requires a different gasification unit configuration. Following months of continuous operation improvements, the Company has made further process improvements in areas such as filtration, maintenance, and temperature levels as well as controller set-up.

Once the MagneGas engineering team completed their operational review, a series of incremental changes and process improvements were made. As a result, the Company immediately saw a step change in throughput and cost reductions over the past three months of operations.

Ease of operation has also been dramatically improved resulting in far fewer processes required related to cleaning, filter changes, waste disposal and compressor maintenance. The cost of operations continues to decrease, and when combined with ease of operation, the Company is confident that this will make the gasification production equipment more attractive to small and medium sized gas distributors who continue to seek a viable alternative to acetylene production.

The Company is in the process of marketing and negotiating equipment sales with several potential customers in the US and in Europe and has shared with them these cost and process improvements which further strengthen MagneGas value proposition.

"Initially, we underestimated how much of an impact butanol would be as a feedstock. We were impressed by the initial results earlier this year, the ease of operation improvements alone should make our equipment more attractive for small and medium sized distributors looking to produce their own acetylene substitute.

Once we were able to calculate the significant cost reductions through several months of empirical data, the switch to butanol has taken the MagneGas value proposition to a completely new level," stated Ermanno Santilli, Chief Executive Officer of MagneGas.

"Operationally, the research, development and production of MagneGas2® is one of the largest contributors to our cost structure," commented Scott Mahoney, Chief Financial Officer of MagneGas. "The use of butanol positively impacts the Company's financial metrics in several ways. First, we are able to significantly reduce the labor hours required to produce our gas, which enables us to reallocate labor to further support growth at our distributor operations without increasing payroll costs.

Second, we have eliminated a number of costly inputs and post production costs that now make the gas meaningfully more profitable per unit of output.  We believe that as we scale the production of our gas in the coming quarters, the financial impact of this development will become a significant factor in our ability to become a cash-flow positive business."

About MagneGas Corporation  

MagneGas Corporation owns a patented process that converts various renewables and liquid wastes into MagneGas fuels. These fuels can be used as an alternative to natural gas or for metal cutting. The Company's testing has shown that its metal cutting fuel "MagneGas2®" is faster, cleaner and more productive than other alternatives on the market. It is also cost effective and safe to use with little changeover costs.  The Company currently sells MagneGas2® into the metal working market as a replacement to acetylene.

The Company also sells equipment for the sterilization of bio-contaminated liquid waste for various industrial and agricultural markets. In addition, the Company is developing a variety of ancillary uses for MagneGas® fuels utilizing its high flame temperature for co-combustion of hydrocarbon fuels and other advanced applications.  For more information on MagneGas®, please visit the Company's website at http://www.MagneGas.com.

The Company distributes MagneGas2® through Independent Distributors in the U.S and through its wholly owned distributor, ESSI (Equipment Sales and Services, Inc.). ESSI has four locations in Florida and distributes MagneGas2®, industrial gases and welding supplies. For more information on ESSI, please visit the company's website at http://www.weldingsupplytampa.com