Global Bioenergy Industry News
ClearFuels to Develop Tennessee Biomass Plant
The renewable energy facility will be co-located with Hughes Hardwood’s wood component products manufacturing facility in Collinwood, Tennessee.
In the deal that was recently signed, Hughes Hardwood will supply 1000 dry tons per day of wood product for conversion into approximately 16 million gallons of synthetic jet or diesel fuel and 4 million gallons of naphtha per year, as well as approximately 8MW of excess renewable power.
The project is currently expected to be operational by early 2014.
BNP Paribas will act as financial advisor in connection with assisting and supporting ClearFuels in securing financing arrangements for senior secured debt for the project.
According to ClearFuels, this is the first public confirmation of the Company’s plans for developing a number of commercial projects using the integrated ClearFuels-Rentech thermo chemical technology for biomass to renewable jet or diesel fuel production.
The final design basis for the Collinwood commercial facility and other commercial projects will come from the joint demonstration of ClearFuels’ biomass gasifier integrated with Rentech’s synthetic fuels technology at a project at Rentech’s Energy Technology Center in Commerce City, Colorado.
This joint demonstration is expected to be completed in late 2011. This demonstration project is supported by a $22.6 million conditional grant from the US Department of Energy.
ClearFuels expects to begin receiving funds from this grant by the end of March.
The ClearFuels gasification and the Rentech synthetic fuels conversion technologies have been developed, tested and improved independently over the past 15 years.
The unique integration of these technologies represents a breakthrough in the design of versatile biofuels production plants, promising a definitive advance in thermo chemical biofuels conversion efficiency and flexibility, making ClearFuels and its partners leaders in producing multiple liquid fuels from the same biorefinery.
Governor Bredesen said: “Tennessee’s nationally recognised business climate and our demonstrated commitment to the clean energy industry create fertile ground for partnerships like this one between ClearFuels and Hughes Hardwood.”
He added: “Alternative fuels are a pillar of Tennessee’s green portfolio, and today’s investment in Collinwood is an affirmation of our state’s important role in the continued growth of this emerging sector.”
Warren Davis, VP of Commercial Development for ClearFuels, said: "Our agreement with Hughes Hardwood is a vitally important step in our commercial development process. All projects start with a site, a technology and dedicated teamwork from both community and development organisations.
"There are no shortcuts to developing successful energy infrastructure projects. We have a terrific and experienced team that understands what is required to get to commercial operation, and we are excited to have Hughes Hardwood as our co-location partner."
Bill Hughes, President of Hughes Hardwood, added: “We are very pleased to play an integral part in the successful implementation of a biorefinery here in Wayne County which, when fully operational, should benefit the timber industry in a multi-county area.”
Mike Yeager, Land Manager at Hughes Hardwood, observed, “The concept of biomass harvesting will revolutionize the logging industry in the South. Landowners who prefer biomass contractors over a conventional harvest will see both economic advantages and a more attractive post-harvest site. Every land owner Hughes Hardwood has assisted has had an issue with disposing of the remaining residual fiber. Now I can offer a profitable solution to that problem.”
“It’s taken a long time to get to this point,” said Wayne Barrier, a member of the ClearFuels Board of Directors and the former manager of the Tennessee Valley Authority biofuels programme.
“We looked at a lot of technologies and have done our homework with ClearFuels and Rentech. Their integrated technology is a great fit for the Tennessee project, and we are excited to get started on commercial development.”
According to ClearFuels, this commercial facility is targeted to break ground in late 2011 following completion of its joint demonstration project with Rentech of the companies’ integrated technologies for the production of renewable fuels. Synthetic diesel fuel produced from the Rentech Process meets ASTM D-975 specifications. Synthetic jet fuel produced using the company’s technology is certified by the U.S. Air Force and for commercial aviation use. Rentech has a 25 per cent strategic ownership interest in ClearFuels.
ClearFuels has begun project development of multiple commercial scale biomass-to-energy facilities in the southeastern United States, Hawaii and internationally.
These projects are expected to use an integrated ClearFuels-Rentech design and be colocated at sugar mills, wood mills and other biomass processing facilities.
TheBioenergySite News Desk
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