ClearFuels Technology planning $200m biorefinery in Tennessee

March 1, 2010

ClearFuels and Rentech are currently developing a demonstration plant before rolling out commercial biorefineries around the Southeastern US and Hawaii

Hawaiian company ClearFuels Technology, Inc., is to develop a $200 million biorefinery in Tennessee to turn waste wood into renewable diesel or jet fuel.

The company has signed a Memorandum of Understanding with Tennessee wood products manufacturer Hughes Hardwood to develop the plant at its facility in Collinwood.

The plans for the facility suggest it would require around 1,000 tons of wood product each day, to produce around 16 million gallons of biodiesel and 4 million gallons of the gasoline-feedstock naphtha each year.

The facility may also produce 6-8 megawatts of excess electricity.

ClearFuels said the project should break ground in late 2011, to begin commercial operations by late 2013 or early 2014.

Warren Davis, ClearFuels vice president of commercial development, said: “There are no shortcuts to developing successful energy infrastructure projects. We have a terrific and experienced team that understands what is required to get to commercial operation, and we are excited to have Hughes Hardwood as our co-location partner.”

The project has been welcomed by Tennessee Governor Phil Bredesen, who said the project should create 50 new jobs directly, along with associated jobs in the supply chain.

Governor Bredesen said: “Alternative fuels are a pillar of Tennessee’s green portfolio, and today’s investment in Collinwood is an affirmation of our state’s important role in the continued growth of this emerging sector.”

ClearFuels will source its biorefinery technology from California company Rentech, Inc., including gasification and Fischer-Tropsch conversion systems, to produce multiple liquid fuels at one site.

The two companies are currently working on a demonstration plant that should be completed at Rentech’s site in Commerce City, Colorado, next year.

ClearFuels is also currently developing a number of multiple, commercial-scale biomass to energy facilities in the Southeastern US and Hawaii, to turn waste materials into energy at sugar mills, wood mills and other biomass processing facilities.

“The concept of biomass harvesting will revolutionize the logging industry in the South,” said Mike Yeager, land manager at Hughes Hardwood. “Landowners who prefer biomass contractors over a conventional harvest will see both economic advantages and a more attractive post-harvest site.

“Every landowner Hughes Hardwood has assisted has had an issue with disposing of the remaining residual fiber. Now I can offer a profitable solution to that problem.”

BNP Paribas will act as financial advisor, assisting and supporting ClearFuels in securing financing for the project.