US Ethanol project in Washington state still on track despite lengthy delays, say owners

In Washington state, the $100 million US Ethanol ethanol plant at Longview plans to re-start construction by October on its long delayed project. Pre-construction grading activity was halted in December 2006 to redesign the plant to meet Washington state’s tough emissions standards. The plant is now expected to be completed in 2010.

Washington state background

In Washington state, a former Imperium Renewable employee has sued the company for as much as $12 million in back payments, punitive damages and attorney’s fees. The suit alleges that Kenneth Orr was dismissed after earning more than $58 million for the company trading commodities, in order to avoid an expensive series of bonus payments on the proceeds from trading. Imperium, in its response, noted that it experienced cash difficulties in 2007, and Orr was laid off after the company concluded it needed to free up capital by ceasing commodities trading activity.

Imperium Renewables canceled its planned IPO due to “unfavorable market conditions.” The company had planned a $345 million IPO in May that would have financed the construction of three new biodiesel plants, including a $90 million project with Hawaiian Electric.

A group of entrepreneurs, scientists and corporate executives have formed the Algal Biomass Organization to accelerate the development and commercial application of algae biomass. Algae have shown significant potential to address some of the world’s most pressing issues, including climate and pollution concerns, alternative fuels and global economic development. The organization is an outcome of the initial Algae Biomass Summit held last November and attended by a group of more than 400.

Raven Biofuels announced a plan to construct an 11 Mgy cellulosic ethanol plant using wood waste as a feedstock. The project is estimated to cost $30 million and will be completed in 14 months from commencement of construction. Financing will be sourced by project finance debt, as well as equity investment by Raven and unnamed partners. The location of the proposed plant was not disclosed.

Propel Biofuels continued on its ambitious program of biodiesel stations, launched its sixth “Clean Fuel Point” near downtown Seattle, offering B5 and B20 biodiesel blends at competitive prices with conventional diesel. Propel is also offering CleanDrive, the industry’s first integrated carbon emission tracking platform. By creating a CleanDrive account with Propel, purchasers of its fuel can get real time reporting of the volume of carbon emissions reduced by using biodiesel instead of petroleum diesel. Clean Drive graphically displays the positive impacts of biodiesel use across three areas: reductions in CO2, barrels of oil displaced and equivalent annual CO2 reduction of mature trees.

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