Bluefire lands 15-year feedstock deal; path cleared for loan guarantee
In Mississippi, BlueFire Renewables (BFRE.OB), announced a 15-year contract with Cooper Marine & Timberlands to provide feedstock for BlueFire’s 19 Mgy cellulosic ethanol project in Fulton. Under the agreement, Cooper Marine & Timberlands will supply BlueFire with locally sourced wood chips, forest residual chips, pre-commercial thinnings, construction waste, storm debris, land clearing, and wood waste from furniture manufacturing waste.
Under the Agreement, CMT will pursue a least-cost strategy for feedstock supply made possible by the project site’s proximity to feedstock sources and the flexibility of BlueFire’s process to use a wide spectrum of cellulosic waste materials in pure or mixed forms.
The term of the agreement is tied to a 12-year financing of the proposed Fulton project, with a 3-year “tail” added to the feedstock contract in line with a 15-year fuel offtake agreement signed two weeks ago with Tenaska BioFuels.
The key input and output contracts with credit-worthy companies were among the requirements for a DOE loan guarantee, for which Bluefire is now in Phase 2 negotiations with the US Department of Energy. BlueFire Renewables is developing its project based on its concentrated acid hydrolysis technology which has been previously demonstrated in an extensive project in Japan.
Category: Fuels
