Fulcrum BioEnergy and Red Rock Biofuels were recently awarded $70 million each in Phase 2 of the joint DOD-USDA-DOE investment through the Defense Production Act to develop commercial grade renewable jet fuel and commericial dieselthat will help meet the transportation needs of the U.S. military and private sector.
Together with Emerald Biofuels, these three projects will produce more than 100 million gallons of military-grade biofuel annually beginning in 2016 and 2017 at a price competitive with their petroleum counterparts. This fuel can be blended up to 50% with traditional fuels and emits less than half the life-cycle greenhouse gas emissions than their petroleum counterparts.
The following companies that received federal investments for the construction and commissioning of biorefineries include:
Emerald Biofuels: To build and operate an 82 million gallon per year refinery on the Gulf Coast to hydro-treat and upgrade waste fats, oils, and greases to create military-grade jet fuel and diesel.
Fulcrum BioEnergy: To build and operate a refinery in McCarran, Nevada, to convert municipal solid waste, using gasification and Fischer-Tröpsch conversion technology, into more than 10 million gallons of renewable jet and diesel fuel a year.
Red Rock Biofuels: To build and operate a 12 million gallon per year refinery in Lakeview, Oregon, using gasification and Fischer-Tröpsch conversion technology to turn forest biomass and wood wastes into renewable fuels for the military.
USDA also awarded Fulcrum a $105 million Biorefinery Assistance Program loan guarantee through Bank of America, N.A. to construct a facility in McCarran, Nev., to convert municipal solid waste to biodiesel jet fuel. USDA Rural Development's loan guarantee represents less than half of the $266 million project cost. The plant is expected to produce 11 million gallons of fuel annually.
This is the first loan guarantee USDA has made for the production of bio jet fuel.
Fulcrum will produce synthesis gas from 147,000 tons of municipal solid waste and catalytically convert it to synthetic paraffinic kerosene/jet fuel through a proprietary technology. The plant will be the first of what the company expects to be several bio jet fuel plants throughout the country.
Last month, Cathay Pacific Airways announced that it is investing in Fulcrum Bioenergy Inc., the parent company of Fulcrum Sierra BioFuels, LLC, and has negotiated a long-term supply agreement with Fulcrum for 375 million gallons of sustainable aviation fuel over 10 years. This would represent about 2 percent of the airline's annual fuel consumption.
Westar Trade Resources assisted Fulcrum with an independent Feasibility Study and consulting for their USDA 9003 application, and also assisted Red Rock Biofuels with their application preparation for the Defense Production Act application.For a free, no-obligation consultation to discuss how we can assist you with your project, please contact us at email@example.com or call 866-480-4405.