US Bluefire enters 15-year off-take contract for ethanol plant in Mississippi
(ADPnews) - Sep 21, 2010 - US green fuel producer Bluefire Renewables Inc (OTC:BFRE) said yesterday it had struck a 15-year deal to sell all ethanol produced at its planned cellulosic ethanol in Fulton, Mississippi to biofuels trader Tenaska Biofuels LLC.
The company did not provide any financial details, saying that the off-take agreement is to immediately start adding to its revenue once the facility starts production. The deal has been priced in line with a market-based formula, which includes the premium for cellulosic ethanol compared to corn-based ethanol. In addition, the contract "will move Bluefire closer to a debt financing agreement with the Department of Energy and U.S. Department of Agriculture", company CEO Arnold Klann said.
The Fulton plant will produce some 19 million gallons (72 million litres) of ethanol annually from green and wood wastes. Bluefire is also close to the completion of a similar project in Lancaster California, which will turn post-sorted cellulosic wastes from the local landfills into about 3.9 million gallons of fuel-grade ethanol a year.
Veselina Petrova is one of Renewables Now's most experienced green energy writers. For several years she has been keeping track of game-changing events both large and small projects and across the globe.