BlueFire Renewables agrees project financing with China Huadian Engineering
Oct 31, 2011 - US green fuel producer BlueFire Renewables (OTC:BFRE) today said it had agreed to receive equity funding from utility China Huadian Engineering Co Ltd, a unit of electricity producer China Huadian Corp, for an integrated biorefinery and power plant in the US.
Under the memorandum of understanding (MoU) signed between the two companies, Huadian will buy a stake in BlueFire Fulton Renewable Energy LLC and, optionally, provide debt funding to BlueFire to complete the construction of the Fulton cellulosic ethanol project in the US state of Mississippi.
The MoU envisages Huadian to provide equity or debt funding for the development of five more plants in the US upon the successful completion of the Fulton project. The MoU also provides for the creation of a joint venture to develop similar projects in China.
The Fulton facility will process local green and wood wastes to produce some 19 million gallons (71.9 million litres) of cellulosic ethanol a year, BlueFire said. The first phase of the project's construction started in December 2010 and was completed in June 2011. The remaining part of the construction depended on securing project financing.