Toledo-based N-Viro International Corp. (OTCBB: NVIC) announced an agreement with Michigan State University to explore the development of its patented N-Viro Fuel Technology at MSU's T.B. Simon Power Plant.

N-Viro is an environmental and materials handling company that owns patented technologies for the treatment of various waste streams including biosolids and manures. Included in these technologies is the patented renewable bio-fuel technology known as N-Viro Fuel.

MSU and N-Viro conducted a full scale test of the N-Viro Fuel process and product at the Simon plant on the MSU campus in East Lansing in January. The successful test separately used both biosolids and animal manure-based N-Viro Fuel to demonstrate the potential of this technology to beneficially reuse these materials by creating a renewable alternative fuel.

After the test N-Viro and MSU agreed on a term sheet to conduct further engineering and analysis to facilitate a long-term arrangement for the design, build and operation of an N-Viro Fuel center adjacent to the power plant. Using the proprietary N-Viro Fuel process would provide a renewable supplemental fuel source -- which is cleaner burning than coal -- for use in the plant.

The term sheet provides the basic framework for N-Viro and MSU to reach final agreement within the next six months. The final agreement is subject to the satisfaction of various conditions, including the negotiation and execution of final, binding agreement. Following the execution of a final definitive agreement, it is contemplated that construction of the N-Viro Fuel plant would commence by mid-2009.

More at www.nviro.com.