BlueFire Renewables Inc., a company focused on the production of renewable fuels from non-food cellulosic wastes, announced it has entered into a Memorandum of Understanding (MOU) with China Huadian Engineering Co. LTD to finance BlueFire’s integrated Power Plant and Biorefinery in Fulton, Miss., as well as up to five additional plants in the U.S. upon success of the Fulton project.
Per the MOU, Huadian will purchase a stake in BlueFire Fulton Renewable Energy LLC and, optionally, debt for the Fulton project to support the financing and construction for this cellulosic ethanol facility.
Huadian is one of China’s largest utilities companies, generating more than 75,000 MW of power in China.
Arnold Klann, president and CEO of BlueFire, emphasized how Huadian will enhance BlueFire’s business strategy.
“Having such a strong partner, both technically and financially, backing up BlueFire, is a significant advancement in bringing BlueFire’s business plan to fruition,” Klann stated in the press release.
Huadian’s collaboration with BlueFire stems from the introduction and low carbon development program launched in late 2009 between the National Center for Sustainable Development in Washington, DC, and the CDM Fund in Beijing, China.
“The goal of the joint program is to identify important emerging practical technologies with significant potential for broad deployment in China, bring these technologies to commercial scale in the U.S. and apply lessons learned in meeting the energy and low carbon development needs of China, the U.S. and globally,” said Mitchell Stanley, president of NCSD. “Cellulosic ethanol manufactured from biomass and not from food crops is mandatory for China, and BlueFire offers a scalable efficient approach to producing numerous valuable industrial chemicals from domestic sources rather than from imported petroleum.”
Once the companies finalize the MOU into a definitive agreement, BlueFire plans to move toward financial closing to accelerate and complete construction of its Fulton project. The first phase of construction was completed in June 2011; the remaining construction is dependent on final financing for the complete project.
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