Monday, November 28, 2011

Jefferson County biomass plant to turn wood and tires into electricity

http://chronicle.augusta.com/news/2011-11-28/jefferson-county-biomass-plant-turn-wood-and-tires-electricity

Biomass plant would burn wood, tires in Wadley

 
 A $70 million biomass plant that burns wood products and shredded tires to make electricity could bring about 25 jobs to Wadley, Ga.
 
“We plan to have it online by the end of 2013 but we’re shooting for summer of 2013,” said Rick Cashatt, CEO of North Star Renewable Energy, the Clayton, Ga., company proposing the project.

The company is working with Jefferson County officials to acquire 25 acres for the plant, which will require permits from Georgia’s Environmental Protection Division and has also raised questions among residents concerned about “tire derived fuels.”

According to the company, the plant would burn about 133,500 tons per year of forest products and about 38,500 tons per year of shredded tires to create about 24 megawatts of power.

“They were saying they could only do it if the state would accept the 20 percent tires as part of the mix of biomass,” said Geary Davis, a local resident who has joined environmental groups in questioning the project. “There are also concerns about ash, the source of the tires, air pollution and also the proximity of the plant to the Ogeechee River.”

Cashatt said pollution concerns over the use of tire derived fuel are unfounded.

“People think of tires being burned in a field somewhere and belching black smoke, but this is a controlled burn inside a boiler,” he said, adding that the tire fuel will be made elsewhere and brought to Jefferson County for use in the biomass plant.

Using tire fuel also makes the biomass mix burn hotter – and therefore cleaner – by eliminating incomplete combustion from using pure forest products that have a high moisture content, he said.

“This is a good environmental benefit a lot of people don’t realize,” he said.

The plant’s application for permits remains under review, said Eric Cornwell, stationary source permitting manager in the Georgia’s Environmental Protection Division’s Air Protection Branch.

State officials typically regulate particulate matter, sulfur dioxide, nitrogen oxides and other materials, he said, adding that the application also stipulates tire materials would be brought in as fuel and not shredded onsite.

Cornwell said there are about 10 biomass fuel power plants already permitted to operate in Georgia, but only one of them – a facility in Rabun Gap that burns exclusively wood products — is actually in operation.

Cashatt, whose company was also involved in developing the Rabun project with some investors from Virginia, said North Star examined 17 Georgia sites for potential biomass projects several years ago.

The list was later reduced to just five sites, and later to just three, including the one in Jefferson County.

“The 2008 recession stopped a lot of projects dead in their tracks,” he said. “Everyone had hoped this industry would really take off.”

One of the partners in the Wadley project is the U.S. Endowment for Forestry and Communities, a non-profit group based in Greenville, S.C., that works to promote forestry related jobs in rural areas, he said.

Friday, November 11, 2011

Sundrop Fuels Announces $450 Million Biofuels Refinery in Alexandria Area

http://www.louisianaeconomicdevelopment.com/led-news/news-releases/sundrop-fuels-announces-$450-million-biofuels-refinery-in-alexandria-area.aspx

11/22/2011

 ALEXANDRIA, La. -- Today, Gov. Bobby Jindal and Sundrop Fuels Inc. CEO Wayne Simmons announced that Sundrop Fuels will build a $450 million biofuels refinery that will bring 150 new direct jobs averaging about $58,000, plus benefits, to Central Louisiana and result in an estimated 1,150 indirect jobs in the region.

Gov. Jindal said, "When I ran for Governor, I told you that it was for one main reason -- I was tired of seeing friends and family move away from Louisiana to pursue their dreams in other states because they couldn't find opportunities here at home. Four years later, and a big reason that we are here today with you, is that our state's economy is not just growing: We are competing and winning in the national and global economy.

"Louisiana's innovation in the energy industry has always been part of our state's economy and our heritage. Today, I am proud to announce that we are here to again build on our state's legacy in the energy industry, while also continuing our winning streak of job creation projects. I'm proud to announce that Sundrop Fuels will invest $450 million in a new biofuels refinery that will take wood waste from the forests here in Central Louisiana and turn that biomass into gasoline. The project will also result in a total of more than 1,300 new jobs in the Central Louisiana region. We are turning our economy around and making Louisiana the best place in the world to pursue a rewarding career."

The biofuels plant will salvage wood waste from renewable forests in Central Louisiana and adjacent regions and use that biomass as a feedstock. Sundrop Fuels also will extract hydrogen from abundant supplies of Louisiana natural gas, combining the hydrogen in a proprietary reactor with carbon extracted from wood waste. The result -- up to 50 million gallons of fuel a year -- will represent the world's first renewable green gasoline that's immediately adaptable to existing pumps, pipelines, engines and transportation infrastructure. By 2020, Sundrop Fuels expects to produce more than 1 billion gallons of renewable fuel annually through its process (including but not limited to its Louisiana facility), meeting nearly 10 percent of the federal government's stated goal for renewable fuels refined from cellulosic material and other alternatives to crude oil.

Colorado-based Sundrop Fuels will create 130 manufacturing jobs and 20 research and development jobs in Louisiana, with construction of the facility beginning in 2012, hiring beginning in 2013 and full commercial operation starting in 2014. Pay at the biofuels facility will average more than $58,000 a year, plus benefits. Because of the refinery's broad use of suppliers and support industries, Louisiana Economic Development estimates nearly eight indirect jobs will be created by the project for every direct Sundrop Fuels job.

LED's Lead Development Group identified and began actively cultivating Sundrop Fuels in early 2011, and the Alexandria area emerged as a promising location because of its access to major electrical and natural gas supplies and because of the abundance of wood byproducts the region boasts. The state's targeted incentives for workforce training and research and development helped Louisiana win the project over several other states in the South and Southwest.

"Sundrop Fuels' first facility will provide America with millions of gallons of renewable gasoline and establish our transformative gasification technology while supporting Louisiana's natural gas and sustainable forestry industries," said Simmons, the Sundrop Fuels CEO. "Our decision to locate in Rapides Parish underscores Louisiana's commitment to the advanced biofuels industry, and we look forward to our partnership in helping meet the nations growing energy needs."

Oklahoma City-based Chesapeake Energy Corp., which holds the leading position for natural gas reserves in the Haynesville Shale in Louisiana, has provided major investment backing for Sundrop Fuels. Other investors include a pair of major venture capital firms, Oak Investment Partners and Kleiner Perkins Caufield & Byers.

To secure the project, LED offered Sundrop Fuels performance-based grants for building and financing costs ($14 million over 10 years), as well as $4.5 million to reimburse relocation costs of research and development operations and key employees. Sundrop Fuels also will receive assistance from LED FastStart™, ranked by Business Facilities magazine as the nation's No. 1 workforce development program. And the company is expected to utilize Louisiana's Quality Jobs, Industrial Tax Exemption and Research & Development Tax Credit programs. Sundrop Fuels also will apply for a private activity bond allocation of $330 million or greater, which will help the State utilize capacity that otherwise would have gone unused; the private activity bond allocation will enable the company to reduce its project financing costs.

"This project is a terrific win for Louisiana in terms of traditional measures of jobs and capital investment, and it also will help position our state as a leader in developing alternative fuels," said LED Secretary Stephen Moret. "Sundrop Fuels will employ a technology that produces green fuels, without subsidies, that can successfully compete with conventional gasoline refined from crude oil."
The Central Louisiana Economic Development Alliance played a key role in helping Sundrop Fuels locate and acquire the proposed refinery site eight miles northwest of Alexandria at the junction of Rapides Station Road and Interstate 49, where the company will build on approximately 1,200 acres and have space available for future expansion.

"CLEDA is committed to creating more jobs, wealth and opportunity for Central Louisiana," said Jim Clinton, CLEDA's president and CEO. "The decision that Sundrop Fuels has made to locate here is a big step in beginning to fulfill that commitment. Sundrop Fuels' presence here will create more than 1,000 direct and indirect jobs, increase employment and average wage rates, and help build a more technologically competitive workforce and economy for the region. We are honored by Sundrop Fuels' decision, and are deeply appreciative of all of our local and state partners for the commitments they have made to make this announcement possible."

About Sundrop Fuels

Sundrop Fuels Inc. is a gasification-based, drop-in, advanced biofuels company based in Longmont, Colo. Backing for Sundrop Fuels comes from its strategic partner, Chesapeake Energy Corp., and from two of the world's premier venture capital firms, Oak Investment Partners and Kleiner Perkins Caufield & Byers. Sundrop Fuels plans to build and operate large-scale biorefineries, with each generating more than 200 million gallons of drop-in, transportation biofuels annually. For more information, visit www.sundropfuels.com