KiOR Receives Fuel Registration From EPA for Renewable Gasoline

First Cellulosic Gasoline Registration in U.S. 

http://www.marketwatch.com/story/kior-receives-fuel-registration-from-epa-for-renewable-gasoline-2012-07-24

press release

July 24, 2012, 11:43 a.m. EDT 

PASADENA, Texas, Jul 24, 2012 (GlobeNewswire via COMTEX) -- KiOR, Inc. KIOR -0.25% , a next-generation renewable fuels company, announced today that it has been granted Part 79 registration for its Renewable Gasoline Blendstock 5 by the U.S. Environmental Protection Agency (EPA). The registration, required by manufacturers of motor vehicle fuels by the EPA, must be completed prior to the sale of the product. 

"Part 79 registration is a landmark for KiOR and the renewable sector, as KiOR's gasoline is the first renewable cellulosic gasoline that the EPA has registered for sale in the United States," said Fred Cannon, KiOR's President and Chief Executive Officer. "With this registration, KiOR's breakthrough cellulosic gasoline will be fueling cars of American consumers this year, providing a truly renewable fuel option that uses only sustainable non-food feedstock, reduces greenhouse gases, creates American jobs, and reduces our dependence on imported oil." 

Mr. Cannon concluded, "Our first production facility, scheduled to begin production later this year in Columbus, Mississippi, is creating over 150 new jobs and will yield enough fuel to meet the annual transportation needs of over 20,000 families. This facility demonstrates how the Renewable Fuels Standard and forward-thinking states like Mississippi can combine to make a positive impact on both domestic energy policy and local rural economies." 

Part 79 registration does not constitute endorsement, certification, or approval by any agency of the United States. 

About KiOR 

KiOR is a development stage, next-generation renewable fuels company that has developed a unique two-step proprietary technology platform to convert abundant and sustainable non-food biomass into cellulosic gasoline, diesel and fuel oil. KiOR's cellulosic fuels may be transported using existing distribution networks and are suitable for use in vehicles on the road today. KiOR strives to help ease dependence on foreign oil, reduce lifecycle greenhouse gas emissions and create high-quality jobs and economic benefit across rural communities. For more information, please visit www.KiOR.com . 

KiOR's shares are traded on NASDAQ under the symbol "KiOR." 

Forward-Looking Statements

This release contains "forward-looking" statements regarding future results and events, including, without limitation, statements about: our potential to be the first U.S. commercial cellulosic diesel/gas producer in 2012, the timing and success of our commissioning phase; the timing of our commencement of production of cellulosic gasoline and diesel, the construction of and commercialization at our biomass-to-fuel facility in Columbus, Mississippi, potential future sales of our fuels products, and our anticipated future operations. For this purpose, any statements contained herein that are not statements of historical fact may be deemed forward looking statements. Without limiting the foregoing, the words "believes," "anticipates," "plans," "expects," intends," "appears," "estimates," "projects," "would," "could," "should," "targets," and similar expressions are also intended to identify forward looking statements. The forward looking statements in this press release involve a number of important risks and uncertainties. The Company's actual future results may differ significantly from the results discussed in the forward looking statements contained in this press release. Such factors and others are discussed more fully in the section entitled "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2011 as filed with the United States Securities and Exchange Commission, and in the Company's other filings with the Securities and Exchange Commission. The "Risk Factors" discussion in the Company's Annual Report on Form 10-K for the year ended December 31, 2011 is incorporated by reference in this press release. If any of these risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, actual results, levels of activity, performance or achievement may vary significantly from what we have projected. The Company specifically disclaims any obligation to update these forward looking statements in the future. These forward-looking statements should not be relied upon as representing the Company's estimates or views as of any date subsequent to the date of this press release. 

This news release was distributed by GlobeNewswire, www.globenewswire.com 

SOURCE: KiOR

 

KiOR receives permission to sell product domestically

http://www.wtva.com/news/local/story/KiOR-receives-permission-to-sell-product/eSJw3DzR6UqWcG37L9SgcA.cspx

Published: 7/24 2:11 pm

Reported by: Mel Carlock

Email: mcarlock@wtva.com

 

PASADENA, Tex.  (WTVA) -- KiOR is now the first biofuel company with permission to sell cellulosic gasoline in the United States.

The Environmental Protection Agency grant Part 79 registration to the company's gasoline blendstock.

The designation is required for a company to sell fuel or fuel additives domestically.

Unlike ethanol, cellulosic gasoline is similar in composition to petroleum-based gasolines.

KiOR recently completed construction on a plant in Lowndes County and has begun work on another facility in Natchez.

Company officials say the Golden Triangle facility will begin operations later this year, but so far have not announced a date.

At full capacity, KiOR officials say they will produce enough annually in Columbus to provide fuel for 20,000 families. 

Low natural gas costs cause dip in biomass prices

http://biomassmagazine.com/articles/7882/low-natural-gas-costs-cause-dip-in-biomass-prices

By Anna Simet | July 23, 2012

 

• 
  
  U.S. Energy Information Administration

Biomass prices dropped in the U.S. South, Northeast and West during the second quarter of 2012, according to a new report by Wood Resources International.

The main reason for declining prices is the continued fall of natural gas prices to levels not seen in 10 years. Prices for woody biomass in the country—including sawmill byproducts, forest residues or urban wood waste—have been on the decline for most of the last three years, but were higher in late 2011 in most regions than they were five years ago, the report cites.

In the second quarter of 2012, woody biomass prices were down between 2 and 10 percent in the U.S. South, Northeast and in the West, compared to the prior quarter. In the Northwest and California, there continues to be a substantial price discrepancy between mill biomass and forest biomass, but the difference is minimal in the South, according to WRI.

The report goes on to point out that during 2011, natural gas prices fell about 45 percent in the country, and the lower prices have reduced the urgency for investing in woody biomass projects. Despite low natural gas prices, however, plans for more facilities utilizing woody biomass continued during 2011 and 2012 in both Canada and the U.S., with some projects nearing completion and others in start-up mode.

Wood fiber demand for all planned biomass projects in the U.S. dropped in the first half of 2012 as compared to early 2011. Most of the decrease in wood usage the past year has been wood used in the generation of electricity for the domestic market in the U.S., while the pellet industry has continuously expanded capacity to serve the growing demand in Europe.

In related news, biofuel company Coskata Inc. recently announced it was changing its plan to use woody biomass as a feedstock at its planned cellulosic ethanol plant, instead moving to natural gas. The news accompanied the announcement that Coskata was shelving its $100 million initial public offering, and moving its proposed plant from Alabama to a new location that has not yet been announced.

Another Biofuel IPO Shelved

http://247wallst.com/2012/07/20/another-biofuel-ipo-withdrawn/

Posted: July 20, 2012 at 1:28 pm

For the second time this year, a start-up company has shelved a planned IPO. This time its Coskata Inc., an Illinois-based company that manufactures ethanol from any carbon-based material. In April, Canada’s Enerkem Inc. withdrew its planned IPO.

Coskata, partially funded by Total SA (NYSE: TOT) and The Blackstone Group LP (NYSE: BX), had hoped to raise $100 million to construct a plant in Alabama that would have produced
ethanol from wood waste. Now the company says it will seek private funding.

The fortunes of publicly traded biofuels companies like Codexis Inc. (NASDAQ: CDXS), Amyris Inc. (NASDAQ: AMRS), Solazyme Inc. (NASDAQ: SZYM), Gevo Inc. (NASDAQ: GEVO), BioFuel Energy Corp. (NASDAQ: BIOF), and KiOr Corp. (NASDAQ: KIOR) has been mixed at best. All except Solazyme currently trade at least -50% below their 52-week highs and BioFuel Energy is down nearly -90%.

Coskata also plans to shift the location of its proposed plant and to use natural gas rather than wood waste as the feedstock for the ethanol conversion. The company’s CEO cited the “compelling economics” of using natural gas as a feedstock and also noted that converting natural gas to ethanol is “a much simpler process” in an interview with Bloomberg.

The company has not withdrawn its IPO filing, but plans to wait until a later date to continue with the offering.

The company’s latest Form S-1 is available here.

Paul Ausick

Biofuel producer Coskata shelves $100M IPO

http://www.chicagotribune.com/business/breaking/chi-biofuel-producer-coskata-shelves-100m-ipo-20120720,0,7037176.story

By Julie Wernau Tribune reporter

3:27 p.m. CDT, July 20, 2012

Warrenville-based biofuel company Coskata Inc. has shelved a $100 million planned initial public offering, saying it will put off plans to build a commercial scale plant that converts wood waste to ethanol and instead look to feed the plant with cheap, abundant natural gas.

The move to natural gas, said Coskata Chief Executive Bill Roe, means the company is likely to find that capital needed for commercialization from private investors, who he said have expressed "great interest" in the technology.

In December, the company, which has piloted its technology in Warrenville and has a demonstration-level project operating in Pennsylvania, filed documents with the Securities and Exchange Commission in anticipation of a public offering in the first or second quarter of 2012. The move followed the success of several IPOs in the biofuels space.

But it was short-lived and most, if not all, biofuel makers who've gone public in the last one to two years have seen their stock prices drop below that of initial offerings. More recent IPOs in the biofuels space have dropped below their initial valuations and several have been pulled.

"It seems to be very consistent that the companies come out at a pretty high value and it drops to an extreme low shortly thereafter," said Heather Youngs, senior analysis fellow at the Energy Biosciences Institute at the University of California at Berkeley. "Processes that work at one scale, sometimes you have to do some adjustments to get them up to a higher scale. Everybody's become a little disillusioned because it's always been five years away, five years away to commercial scale and it hasn't quite happened yet."

The microorganisms produced by Coskata ingest so-called synthesis gas (a mix of hydrogen, carbon monoxide and carbon dioxide) to produce ethanol. Through a gasification process, the company can convert a variety of materials, including wood chips, wood waste and municipal solid waste into gas for ingestion by the microorganisms.  The company planned to use the money raised in the IPO to build a commercial-scale facility in Alabama that would convert wood waste into ethanol.

In the natural-gas only process, the gas, which is made up primarily of methane, is partially oxidized through a process called "reforming" to create synthesis gas. Gasification is not necessary.

With natural gas prices at historic lows, Roe said, the company decided to redirect its commercialization strategy.

"There was real interest from private investors in this; so, it was a natural move," he said.

The company is back by venture capitalist Vinod Khosla, as well as Blackstone Group LP, Total SA and General Motors.

jwernau@tribune.com | Twitter @littlewern

Copyright © 2012, Chicago Tribune

Khosla-Backed Coskata Shelves IPO, Shifting Focus to Gas

http://www.businessweek.com/news/2012-07-20/coskata-shelves-ipo-shifts-focus-to-natural-gas-ethanol

By Andrew Herndon on July 20, 2012

Coskata Inc. (COSK) (COSK), a biofuel company backed by venture capitalist Vinod Khosla, shelved its $100 million initial public offering and is seeking investors for a plant that will convert natural gas into ethanol. 

Unfavorable market conditions were the main reason for putting the IPO on hold, Chief Executive Officer Bill Roe said. The closely held company, which also counts Total SA (FP) and Blackstone Group LP among its investors, registered Dec. 16 to sell shares.

Coskata is the second biofuel company this year to reconsider an initial share sale, after Canada’s Enerkem Inc. withdrew its offering in April. Other biofuel developers that have completed deals in the last two years have lost value, and “that hasn’t helped,” Roe said in an interview yesterday. “It has soured a lot of the investors.”

The company, based in Warrenville, Illinois, will attempt to raise the same amount through a private placement with investors and a deal may be completed during the fourth quarter, Roe said.

“We don’t believe that the markets are open for new issuers at the moment,” he said. “It’s just not the right time.”

The backing will support Coskata’s first commercial facility, which will use gas as the main ingredient in a process that yields ethanol.

Coskata initially planned to use the proceeds from the IPO to build a facility in Alabama to produce ethanol from wood waste. The company converts carbon-containing materials into hydrogen and carbon monoxide with gasification technology licensed from Alter NRG Corp. (NRG), then uses its proprietary microorganisms to process the gases into ethanol.

‘Significant Pivot’

The new plant will be at a different location, Roe said. “This is a fairly significant pivot for our company,” he said. “Up until fairly recently we had been intending to commercialize on a biomass-conversion platform.”

Coskata is shifting to gas because it has plunged in value, he said. Prices hit a 10-year low in April.
Ethanol was about six to eight times more expensive than gas last year per million British thermal units, presenting “compelling economics” for companies that convert gas to transportation fuels, Coskata said on its website.

“When we use natural gas as opposed to any other carbon- containing material, it’s a much, much simpler process,” Roe said.

Shifting Requirements

The planned transition to gas-based ethanol is also due to uncertainty about federal biofuel mandates, Roe said.

The Renewable Fuel Standard, or RFS, a U.S. Environmental Protection Agency regulation, requires oil refiners to blend 36 billion gallons (136 billion liters) of biofuels a year with their products by 2022. The industry is unlikely to produce enough to meet some of those requirements, including so-called cellulosic biofuels made from non-food plant material.

That’s prompted House Republicans to introduce a bill calling for the RFS to be modified or repealed. The American Petroleum Institute sued the EPA in March, saying some RFS requirements are unachievable.

Given the potential the the RFS will be changed, investing in cellulosic-biofuel plants is “not a risk that we’re willing to take,” he said, though “we’re not at all abandoning the notion of biomass as a feedstock.”

Biofuel IPOs

Two other U.S. biofuel IPOs are still pending. Fulcrum BioEnergy Inc., which produces ethanol from gasified trash, registered Sept. 22 to raise as much as $115 million.

Mascoma Corp., another of Khosla’s biofuel investments, filed Sept. 16 to raise as much as $100 million to develop technology that produces ethanol from wood using genetically modified bacteria. Neither company has said how many shares they plan to sell or at what price.

Coskata hasn’t withdrawn its IPO registration with the U.S. Securities and Exchange Commission, spokesman Matthew Hargarten said by e-mail. “They will still consider a public offering at some point in the future, but they do not want to have the public markets dictate their commercialization timeline.”

To contact the reporter on this story: Andrew Herndon in San Francisco at aherndon2@bloomberg.net

To contact the editor responsible for this story: Reed Landberg at landberg@bloomberg.net

Coskata will consider other locations for bio-refinery planned for Boligee

http://greenecountydemocrat.com/?p=4335

July 12, 2012



The Greene County  Industrial Development Authority  has been notified by Coskata, Inc., a developer of technology  for the production  of renewable fuels and chemicals, that due to  the evolving nature of Coskata’s  first commercial project, their siting criteria has changed and they currently need a site with greater utilities  infrastructure than that found at Crossroads of America Park in Boligee, AL. For this reason, they have elected to re-open the site selection process for their first commercial plant.

Coskata has stated that the company is grateful for the support of the people of Greene County  who have worked tirelessly for this project. It further stated that it believes  that these  efforts  have  not been in vain and  it looks forward to the opportunity  to complete  a  commercial  woody biomass   project at the Crossroads  site in the  future.

Industrial Authority  Chairman Danny Cooper said, “This is disappointing, however  the Crossroads of America Park has  attracted the attention  of several companies across many different  industry lines because of its location and  accessibility to a  transportation infrastructure that  includes rail, water,  interstate and fuel pipeline systems. We will continue to work with Alabama Development Office, Alabama Power Company Economic Development  Department and other Alabama Economic Development entities to market  this area of the state.”

Crossroads of America is anchored to the North  by Enterprise Products, a  refined products terminal.  The facility has storage for gasoline, diesel and ethanol  and features  direct access to most of the Gulf Coast refining centers through an interconnect with the Colonial Pipeline System. Additionally, the intermodal terminal offers  truck and marine transportation options  and future rail capabilities.
Crossroads of America is anchored to the South by a Warehouse/Distribution location of Rock-Tenn, one of North America’s leading producers of corrugated and consumer packaging and recycling solutions, with annualized net  sales  of approximately $10 billion.

Crossroads is located at exit 32 Interstate 20/59, served by Alabama Gulf Coast Rail, a subsidiary of RailAmerica. The existing 52,000 square foot speculative building will attract companies seeking expansion  or  relocation.