Sundrop Fuels to set up biofuel plant in Louisiana
Nov 23, 2011 - US Sundrop Fuels Inc yesterday announced plans to build an advanced biofuel plant with capacity to produce 50 million gallons (189 million litres) of fuel a year in the state of Louisiana.
The Colorado-based company said it had agreed to acquire land near Alexandria for its first production facility, which will represent an investment of USD 450 million-500 million (EUR 334m-371m).
The plant will use wood waste combined with hydrogen extracted from natural gas to generate ready-to-use green gasoline. Sundrop Fuels says the cost of its drop-in biofuel is designed to be equal or below that of petroleum-based transportation fuels.
Part of the funds for the facility, which will create 150 direct jobs, will come from the sale of tax-exempt private activity bonds. Louisiana is also providing USD 14 million in performance-based grants over 10 years and USD 4.5 million to reimburse costs for the relocation of research and development activities and key staff.
Construction is to start next year and the plant is scheduled to become fully operational in 2014.