Image courtesy of Waste Management World. |
And now Sundrop has a
site for its inaugural facility. The company announced on Nov. 22, 2011 that it
has purchased 1,200 acres of land near Alexandria, La. to build its first
production facility. Aiming to be running at full speed by 2014, Sundrop Fuels
estimates it will be able to produce close to 50 million gallons of “green
gasoline” annually.
Unlike similar projects
in the liquid fuel experiment, Sundrop Fuels hasn’t received federal loans to
subsidize its project. The state is allowing the sale of tax-exempt private
activity bonds and will offer standard performance-based incentives for the 150
new jobs the plant will bring to Alexandria, but both of these initiatives
involve no risk to the taxpayer. This comes as a relief to many who are
familiar with the $156 million loans the now-defunct Range Fuels received for
its failed project in Mississippi.
So where is the money
coming from for this $450-500 million facility? Chesapeake Energy Company
became a 50 percent stakeholder in the company in July with a $155 million
investment. Oak Investment Partners and Kleiner Perkins Caufield & Byers
have also made $20 million investments and hold spots on the company’s Board of
Directors.
While the forward motion
on the project is exciting, many experts in the industry feel we are still at
least a decade out from seeing any measurable results. The recent announcement
of Range Fuel’s bankruptcy also serves as a reminder that we are still in the
pioneering stages of this industry.
Better BTU Take: Big
bets by big guys makes this a project worth following.
Range failed in Georgia. Enerkem is reportedly building a similar pilot in Pontotoc, MS and calling their output 'ethanol and other green chemicals.'
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