Thursday, November 24, 2011

New plant to produce 'green' gasoline

Sundrop Fuels has acquired a land located near Alexandria, Louisiana, where it would build its first production facility that will produce the world’s first renewable, ready-to-use “green” gasoline from sustainable forest waste and hydrogen from clean-burning natural gas.

According to the Colorado-based company, the new plant will be able to produce 50 million gallons a year.

The plant, which will cost between US$450 and $500 million, will be partly funded via the sale of tax-exempt Private Activity Bonds. These do not involve any financial obligation from local or state authorities.

The state of Louisiana has also offered the company with performance-based incentives for the plant, which will likely provide 150 jobs and have a substantial economic effect in the area.

As a “drop-in” bio fuel, it can directly replace petroleum fuels. It is also designed to cost less than or as much as petroleum-based transportation fuels.

Sundrop Fuels will convert cellulosic feedstock into synthetic gas using a gasification process. The synthetic gas will then be converted into bio-based “green gasoline” that can be distributed via existing fuel distribution infrastructure.

To view the original article, click here.

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