BlueFire Renewables Inc. will integrate a 400,000 ton per year wood pellet production plant into its plans to build 9-million gallon per year ethanol plant facility in Fulton, Mississippi
. Pellets produced at the plant will be sold under long term contracts into the European mandated renewable energy market.
The company had earlier announced start of construction and completed preliminary site work for the ethanol facility. The engineering and other development activities needed are already under way to add the pellet plant. Synergistic partners will be announced once the definitive agreements are signed.
"This restructure provides a more robust economic model for the Fulton facility with a significant increase in projected revenues. It has become apparent in our attempts to obtain financing for the project that the right synergies and revenue model would be needed to build this first of a kind facility," said Arnold Klann, president and CEO of BlueFire.
"The optimum use of biomass in the integrated facility strikes a much better balance of revenue with costs and a better utilization of resources. The more profitable use of capital and the enhanced security of projected revenue streams more closely match what the banks have been requiring in the very conservative and restricted credit markets,” he added.
The firm said traditionally wood pellets are used for electricity generation and can be sold under long-term, fixed-price contracts to credit worthy utilities, thereby adding financial stability to the project. Blended with lignin from BlueFire's process, the wood pellets create a market advantage under the international mandates for renewable energy, especially for power in the European Union.