Monday, July 9, 2012

Project Update: Sundrop Fuels Aligns Itself With Another Big Player for Inaugural Site


We first brought you the story of Sundrop Fuels in December, after the advanced biofuels company announced plans for its first commercial project near Alexandria, La. The Colorado-based startup is significantly backed by big names, including strategic partner Chesapeake Energy Corp., with additional investments from Oak Investment Partners and Kleiner Perkins Caulfield & Byers. 


Now Sundrop Fuels will be working with another big name in the industry as it continues forward progress on its inaugural project in Rapides Parish, La. The gasification-based advanced biofuels company has signed a licensing agreement with ExxonMobil to use its patented methanol-to-gas technology at its facility.

Sundrop Fuels announced plans for its alternative fuels project in Nov. 2011. With plans to break ground by the end of the year and a goal of being in production by 2014, the company's first commercial plant is designed to produce up to 50 million gallons of renewable gasoline per year. 

Adding ExxonMobil to the mix strengthens Sundrop's safety net because it means that one more major company has a stake in the project's success. The methanol-to-gasoline process was developed in the 1970s and successfully commercialized for a large-scale natural gas-to-gasoline plant in the 1980s in New Zealand. The Louisiana project would mark the first time the MTG process is used for the production of biofuels.

The success of the Louisiana project is crucial for Sundrop Fuels, which needs a commercial installation of its RP Reactor to prove its radiant particle heat transfer gasification technology. The company hopes to use this project as a stepping stone for future massive-scale biofuels plants that can produce more than 300 million gallons of renewable, drop-in biofuels annually. 



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