September 20, 2010
BlueFire Renewables Announces Agreement with Tenaska BioFuels for Mississippi Cellulosic Ethanol Facility
"This off-take agreement is a significant step forward for BlueFire. It provides immediate revenue once our plant is on-line. Also, it will move BlueFire closer to a debt financing agreement with the Department of Energy and U.S. Department of Agriculture," stated Arnold Klann, CEO of BlueFire Renewables, Inc. "This is one of the first cellulosic ethanol contracts of its kind in the United States establishing BlueFire as a clear leader in the industry."
Pricing of the 15-year contract follows a market-based formula structured to capture the premium allowed for cellulosic ethanol compared to corn-based ethanol giving BlueFire a credit worthy contract to support financing of the project. Despite the long-term nature of the contract, BlueFire is not precluded from the upside in the coming years as fuel prices rise.
TBF, a marketing affiliate of Tenaska, provides procurement and marketing, supply chain management, physical delivery, and financial services to customers in the agriculture and energy markets, including the ethanol and biodiesel industries. In business since 1987, Tenaska is one of the largest independent power producers.
"We look forward to a long-term relationship with BlueFire and to collaborating on off-take agreements for future plants as BlueFire continues to expand and bring valuable biofuels to the markets that need it most," stated Dave Neubauer, TBF general manager and vice president.
The Fulton, Miss. project will allow BlueFire to use green and wood wastes available in the region as feedstock for the ethanol plant, which is designed to produce approximately 19-million gallons of ethanol per year. Another fully permitted and shovel-ready facility in Lancaster, Calif. 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.
Source : Press Release
See Also :
BlueFire Ethanol Changes Name To BlueFire Renewables