Alliance BioEnergy Plus makes offer to acquire Ineos’ Florida ethanol plant
Alliance BioEnergy Plus Inc., West Palm Beach, Florida, says it has submitted an offer to purchase a 145-plus-acre ethanol plant in Vero Beach, Florida, that was previously owned by Ineos New Planet Bioenergy.
If successful, the company says it will begin to retrofit the front end of the facility immediately with its patented cellulose to sugar (CTS) process and will begin converting local yard waste into cellulosic ethanol through an option agreement with Indian River County.
Ineos Bio broke ground on the plant in February 2011 and completed the $130 million facility in 2012. It announced in late 2016 it was putting its ethanol business, including the Vero Beach demonstration site, up for sale. In a statement issued in September 2016, Ineos Bio says the economic drivers for the development of the technology (gasification fermentation) no longer aligned with its objectives.
Alliance Bioenergy Plus CEO Daniel de Liege says he has been encouraged by the response and support he has received from the county, chamber, economics development office and community.
If successful and running at capacity in early 2018, the facility will produce 8 million gallons per year of cellulosic ethanol valued at $33 million and with a pretax profit of more than $24 million, according to the company. Alliance BioEnergy Plus says it will assess the viability of the land, feedstock, permits, testing and activity at the site and environmental filings and regulations.
BP signs deal with Clean Energy to expand RNG fueling
BP, Chicago, and Clean Energy Fuels Corp., Newport Beach, California, have announced that BP will acquire the upstream portion of Clean Energy’s renewable natural gas (RNG) business and sign a long-term supply contract with Clean Energy to support the firm’s continuing downstream renewable natural gas business.
The deal enables both companies to accelerate the growth in RNG supply and meet the growing demand of the natural gas vehicle fuel market, according to the two firms.
Under terms of the agreement, BP will pay $155 million for Clean Energy’s existing biomethane production facilities, its share of two new facilities and its existing third-party supply contracts for RNG.
Biomethane is produced entirely from organic waste, and vehicles fueled with it are estimated to result in 70 percent lower greenhouse gas emissions than equivalent gasoline- or diesel-fueled vehicles.
Through a long-term supply contract with BP, Clean Energy will continue to have access to RNG to sell to its growing customer base using its Redeem-branded RNG fuel.
“Demand for renewable natural gas is growing quickly, and BP is pleased to expand our supply capability in this area,” says Alan Haywood, CEO of BP’s supply and trading business.
Clean Energy, in turn, says it will be able to expand its Redeem customer base at its North American network of natural gas fueling stations. Clean Energy will buy RNG fuel from BP and collect royalties on gas purchased from BP and sold as Redeem at it stations. This royalty payment is in addition to any payment under BP’s contractual obligation.
“We started our Redeem fueling business from scratch less than four years ago and have grown it into a significant enterprise,” says Andrew Littlefair, Clean Energy president and CEO. “This transaction will help to take it to the next level. BP’s investment in and focus on renewable natural gas supply will ensure that Clean Energy can meet the growing demand of our customers for renewable fuel.”
Green Arc opens gasification plant
MagneGas Corp., Tampa, Florida, has announced it has successfully installed a plasma-arc gasification system as contracted for sale to Green Arc Supply LLC of Shreveport, Louisiana.
Green Arc Supply purchased a gasifier to manufacture and distribute MagneGas2 fuel exclusively in certain regions of Louisiana and Texas. The company received $775,000 for the purchase of the system and royalty payments that amount to 2 cents per cubic foot produced by Green Arc.
Green Arc will have exclusive distribution rights for certain regions of Louisiana and Texas with nonexclusive distribution rights in remaining regions of Louisiana and Texas and all of Arkansas, Mississippi and Oklahoma.
MagneGas says entering into future agreements with Green Arc will result in significant capital infusions through additional equipment sales and royalty payments.
Fiberight retains permits for WTE facility
An ongoing appeal against Catonsville, Maryland-based Fiberight LLC’s permits for a waste-to-energy (WTE) facility in Hampden, Maine, ended after a Superior Court judge upheld state permits for the project. The Maine Department of Environmental Protection (DEP) can now issue permits to Fiberight for air emissions, solid waste processing, stormwater management and compliance with the Natural Resources Protection Act.
The $69 million facility was developed through a partnership with the Municipal Review Committee (MRC), a nonprofit organization that represents the solid waste interests of more than 187 Maine communities. The facility is designed to convert municipal solid waste (MSW) into biofuels.
MRC voted to exit its partnership with Penobscot Energy Recovery Co. (PERC), Orrington, Maine. PERC, it’s majority owner, USA Energy, and Exeter Agri-Energy, Exeter, Maine, filed the appeal in August 2016 in Kennebec County Superior Court, claiming Fiberight’s record has “serious deficiencies” because of the company’s failures to demonstrate the technical and financial abilities to build the plant.
Justice Michaela Murphy determined each claim did not provide the items needed and the DEP did not abuse its discretion when issuing the permits.