ZeaChem Begins Core Facility Operations at Demonstration Plant in Boardman, Oregon

ZeaChem Inc. today announced it has completed construction of the core facility for its new integrated demonstration biorefinery in Boardman, Oregon. Construction of this core project was completed on schedule, with no lost time or reportable accidents, and significantly under budget. The core facility created 50 construction jobs and will employ 25 full-time operations staff in the region.

The core will produce the intermediate chemicals acetic acid and ethyl acetate, which are high-value products for applications including paints, lacquers and solvents. ZeaChem will sell bio-based chemicals to commercial and industrial customers seeking renewable and cost-competitive alternatives to petroleum-sourced chemicals.

“Beginning operations at the core facility is another indication that ZeaChem continues to successfully execute its strategic roadmap,” said Jim Imbler, president and chief executive officer of ZeaChem. “Our phased development approach minimizes risk by allowing us to produce marketable products as we scale up our biorefining operations. We will continue to build out our biorefinery platform to produce a broad portfolio of sustainable and economical chemicals and fuels derived from cellulosic biomass.”

ZeaChem is further developing its integrated biorefinery through implementation of a second project to add the capability of using cellulosic biomass on the front end and converting ethyl acetate into ethanol on the back end. This separate “bookends” project is currently underway and supported by a $25 million grant from the U.S. Department of Energy (DOE). Once operational in 2012, it will result in the production of up to 250,000 gallons per year (GPY) of cellulosic ethanol.

The company is now developing commercial biorefineries for the production of advanced biofuels and bio-based chemicals.

Headwaters Incorporated Announces Sale of Its 51% Ownership in Blue Flint Ethanol LLC

Headwaters Incorporated today announced that Great River Energy has acquired full ownership of Blue Flint Ethanol LLC, an ethanol biorefinery located in Underwood, ND, from Headwaters Ethanol Holdings LLC, a subsidiary of Headwaters Incorporated. Prior to this acquisition, Great River Energy owned 49 percent of Blue Flint Ethanol LLC and Headwaters Ethanol Holdings owned 51 percent.

Great River Energy is one of the nation’s largest generation and transmission cooperatives. It was the first utility in the U.S. to locate an agricultural processing facility next to a coal-fired power station. The Blue Flint biorefinery purchases process steam from Great River Energy’s Coal Creek Station facility. In doing so, Blue Flint Ethanol, the joint venture between Great River Energy and Headwaters, was able to avoid the cost of building and operating a separate boiler unit. This helped make Blue Flint Ethanol one of the most cost effective, energy efficient, and environmentally friendly ethanol plants in the country.

"We were pleased to have worked with Great River Energy over the past five years in building and operating an exemplary biorefinery. They have been an excellent partner for us," said Donald P. Newman, Headwaters' Chief Financial Officer. "Under the terms of the agreement, effective January 1, 2012, Headwaters received approximately $18.5 million in cash proceeds. Headwaters intends to use the net proceeds from the sale to reinvest in assets of its business and to strengthen its balance sheet."

Blue Flint Ethanol LLC will continue to operate as a wholly-owned independent subsidiary of Great River Energy.

Walmart's Solar Power Initiative Will Total More Than 130 Stores By The End Of 2013

Walmart today announced its plan to install solar panels on up to 60 additional stores in California, expanding the company's solar portfolio to more than 75 percent of its stores in the state, making California the first state in the nation where Walmart has devoted this level of commitment to renewable energy.  

"California presents a great opportunity for Walmart to make significant progress toward our sustainability goals by installing solar power on more than 130 store rooftops throughout the state," said Kim Saylors-Laster, Walmart vice president of energy.  "Walmart has reduced energy expenses by more than a million dollars through our solar program, allowing us to pass these savings on to our customers in the form of everyday low prices."

When complete, Walmart's total solar commitment in California is expected to:

• Generate up to 70 million kilowatt hours of clean, renewable energy per year, which is the equivalent of powering more than 5,400 homes*;
• Avoid producing more than 21,700 metric tons of carbon dioxide emissions per year, which is the equivalent of taking approximately 4,100 cars off the road*; and
• Provide 20 to 30 percent of each facility's total electric needs.

"Walmart has undertaken one of the most ambitious solar initiatives of any company in the U.S., and tripled the scale of its initial project with us," added Lyndon Rive, SolarCity's CEO.  "Walmart is setting an example that far more companies in the U.S. can follow; it is possible for many businesses to pay less for solar power than they currently pay for electricity."

Walmart's investment in solar power is anticipated to create hundreds of jobs in California through its partnership with SolarCity, which will own, install and maintain the new solar power systems. The San Mateo, Calif.-based company has added more than 500 new full-time jobs since it initiated its first Walmart solar project, and expects to hire hundreds more before the end of the year.

"Our solar efforts in California have proven to be a great way for Walmart to build our renewable energy program," said Mack Wyckoff, senior manager of renewable energy at Walmart.  "We are confident that we will continue to grow our solar energy program in the U.S. and around the world because of the initial success we have had in California."

Walmart is using a number of renewable technologies around the world to make progress towards the goal of being supplied by 100 percent renewable energy.

Valero Renewables to Install Corn Oil Extraction Systems at Four Midwest Ethanol Plants

Valero Renewable Fuels Company LLC, a subsidiary of Valero Energy Corporation, announced today its plan to install an ICM-patent pending, next-generation Advanced Oil System (AOS) corn oil extraction system at four of its ethanol plants in the Midwest by the end of the first quarter of 2012.

The investment will allow the Valero Renewables plants to recover more than one-half pound of corn oil per bushel of corn processed, giving the plants an additional source of revenue besides ethanol and distillers grains.

The four plants that will take part in the initial installation of corn oil extraction equipment are in Albert City, Charles City, Fort Dodge and Hartley, Iowa. Following the initial rollout of corn oil extraction at these first four plants, Valero Renewables will study the possibility of installing the equipment at another five of its plants that use a dry mill technology to produce ethanol.

“In the basic dry mill ethanol process, all of the corn oil ends up in distillers grains, which is used as livestock feed,” said Jim Gillingham, Valero’s Senior Vice President-Alternative Energy and Project Development. “The new equipment will allow us to recover corn oil so that it can be sold into higher-value markets for use in animal feed and as a feedstock for biodiesel production.”

Valero Renewables expects the corn oil extraction program to enhance plant margins at a low cost, enabling a payback of capital expenditures in less than two years.

Gevo and South Hampton Resources to Build Hydrocarbon Processing Demonstration Plant

Gevo, Inc. today announced it plans to work with South Hampton Resources, Inc., a subsidiary of Arabian American Development Co., to build a hydrocarbon processing demonstration plant at their facility just outside of Houston in Silsbee, Texas. This demonstration plant is expected to process up to 10,000 gallons of Gevo’s isobutanol per month into a variety of renewable hydrocarbon materials including jet fuel for engine testing, isooctane for gasoline, isooctene and paraxylene for polyethylene terephthalate (PET) and will supply other potential customers with material for product qualification and evaluation. The demonstration plant is slated for completion before the end of 2011. The contract between the companies is for two years with one-year extensions thereafter.

“This demonstration plant allows us to complete the value chain from isobutanol to renewable hydrocarbon fuels and chemical intermediates which is one of our key strategic objectives,” said Patrick Gruber, Ph.D., CEO of Gevo. “With the operation of this plant, Gevo intends to demonstrate its fully integrated biorefinery -- going from renewable carbohydrates all the way to fungible hydrocarbon materials used across the refining and petrochemical industries. We expect this plant to showcase the value of our renewable hydrocarbons and drive future customer demand.”

“We have a growing list of potential customers and end-users interested in renewable hydrocarbons for a variety of market applications from jet fuel to renewable PET,” said Christopher Ryan, Ph.D., president and COO of Gevo. “This plant should allow us to supply early adopters with product so they can test our material, make samples and start their selling cycle. We also expect to gain critical technical and market insights along the way.”

South Hampton Resources, Inc. has agreed to provide Gevo with toll-manufacturing services at its Silsbee, TX facility and complete the final design and engineering package for the demonstration plant from preliminary plans supplied by Gevo. Gevo will own all the intellectual property that results from the work including the plans, designs and systems developed for the demonstration plant and future commercial-scale plants.