Engineering News

BlueFire Seeks Federal Loan Guarantee for Miss. Ethanol Project
February 23, 2010

BlueFire Ethanol Fuels, Inc. has submitted an application for a $250 million dollar loan guarantee for the company's planned cellulosic ethanol biorefinery in Fulton, Miss.

The application, filed under the Department of Energy (DOE) Program DE-FOA-0000140, which provides federal loan guarantees for projects that employ innovative energy efficiency, renewable energy, and advanced transmission and distribution technologies, was submitted 15th of February, 2010 and serves as a phase one application in a two phase approval process.

The Fulton plant is already a recipient of an award of up to $88 million from the U.S. Department of Energy under the Energy Policy Act of 2005 and the American Recovery and Reinvestment Act of 2009. If approved, the loan guarantee will secure the financing for the remainder of the costs to construct the facility, which will produce 19 million gallons of ethanol per year from woody biomass, mill residue, and other cellulosic waste.

"We are very optimistic that the DOE will consider the enormous benefits of BlueFire Ethanol's technology to convert cellulosic waste products into useable biofuels during this selection process," said Arnold Klann, CEO of BlueFire Ethanol. "Programs like the DOE loan guarantee enable first-of-its-kind technologies to come to fruiting and ultimately help ease the United States' dependence on fossil fuels like petroleum, which is oftentimes imported from hostile nations."

Currently, BlueFire Ethanol is focused on the development of two cellulosic ethanol facilities in Lancaster, Calif., and Fulton, Miss.

The fully-permitted and shovel-ready Lancaster facility, BlueFire's first U.S. commercial plant, will use post-sorted cellulosic wastes diverted from Southern California's landfills to produce approximately 3.9 million gallons of fuel-grade ethanol per year. BlueFire is in the detailed engineering phase and expects to have all necessary permits for its second commercial plant in Fulton by this summer, putting the company on a path to commence construction by the end of 2010. These two planned facilities will create more than 1,000 construction jobs and, once in operation, more than 100 new operations and maintenance jobs. This is in addition to the hundreds of jobs created or maintained at equipment vendors and suppliers.

"We are looking forward to a very busy and productive year in 2010; we have all of the pieces in place to respond to President Obama's call to boost biofuels production and reduce our dangerous dependence on foreign oil," added Klann. "We at BlueFire are committed to bringing new fuel sources to Americans and agree with the current administration that projects such as ours are the right approach for creating new jobs, equity for shareholders and wealth for the nation, while also developing new export technologies to offset capital flight and give the nation energy security by offsetting oil imports."

BlueFire Ethanol Fuels, Inc. was established to deploy a commercially ready, patented and proven Concentrated Acid Hydrolysis Technology Process for the profitable conversion of cellulosic waste materials ("Green Waste") to ethanol, a viable alternative to gasoline. BlueFire is the only cellulose-to-ethanol company worldwide with demonstrated production of ethanol from urban trash (post-sorted MSW), rice and wheat straws, wood waste and other agricultural residues.

BlueFire is one of four companies awarded funding from the U.S. Department of Energy under the Energy Policy Act of 2005 to construct cellulosic biorefinery production facilities. BlueFire's biorefineries will be located near markets with high demand for ethanol and will use locally available biomass.

Source: BlueFire Ethanol Fuels, Inc.

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