INEOS Bio JV Receives $75 Million USDA Loan Guarantee for Bioenergy Project Funding will create jobs through the construction and completion of advanced commercial facility in Florida
VERO BEACH, Fla., Jan. 5, 2011 /PRNewswire/ -- Today INEOS Bio and its joint venture partner, New Planet Energy, announced they have received a conditional commitment for a $75 million loan guarantee from the U.S. Department of Agriculture's (USDA) 9003 Biorefinery Assistance Program. Funds will be used for the construction of the world's first INEOS BioEnergy Center to be situated near Vero Beach, Florida. The BioEnergy Center will produce eight million gallons (24,000 tonnes) of advanced biofuel per year together with six megawatts (gross) of renewable power from biomass including yard, vegetative and wood wastes and municipal solid waste. Financing from the USDA program is provided to advance the next generation bioenergy technologies into the commercial sector.
"We are encouraged by the continued confidence and commitment the U.S. Government has shown in assisting with the commercial development of this new bioenergy technology," said Peter Williams, CEO of INEOS Bio and Chairman of INEOS New Planet BioEnergy. "These programs are providing the funds needed to enable the U.S. to achieve a leading position in the bioenergy sector through projects such as ours. As well as directly assisting construction of the INEOS New Planet BioEnergy commercial plant, the loan guarantee also represents an important step along the road to replication of this exciting new technology through INEOS Bio's licensing program."
The USDA 9003 program provides guaranteed loans for the development and construction of commercial-scale biorefineries or for the retrofitting of existing facilities using eligible technology for the development of advanced biofuels.
Site preparation and construction are underway at the BioEnergy Center, which has created 55 new jobs to date. The BioEnergy Center, slated to begin production in 2012, is anticipated to provide 175 jobs during construction and 50 full-time jobs once the facility is completed.
The heart of the INEOS Bio technology is a patented anaerobic fermentation step, through which naturally occurring bacteria convert gases derived directly from biomass into ethanol. Unlike other technologies that rely on one primary source of feedstock, the INEOS Bio process can produce ethanol and renewable energy from numerous feedstocks, including construction waste, municipal solid waste and forestry and agricultural waste, while breaking the link between food crops and ethanol production. This flexibility allows facilities, like the Florida BioEnergy Center, to be built anywhere in the world, wherever there is biomass waste, providing jobs and locally sourced renewable energy for urban and rural communities.
About INEOS New Planet BioEnergy
INEOS New Planet BioEnergy is a joint venture between INEOS Bio and New Planet Energy. The U.S. Department of Energy (DOE) selected the INEOS Bio JV to receive a $50 million cost matching grant to help lay the foundation for full commercial-scale development of the biorefining industry in the United States. This project is part of the ongoing effort to reduce U.S. dependence on foreign oil, spur the creation of the domestic biorefining industry and provide new clean tech jobs throughout the country. For more information, visit www.inpbioenergy.com.
About INEOS Bio
INEOS Bio is a BioEnergy company commercializing and licensing a highly innovative thermo-chemical and bio-chemical technology for the production of renewable biofuels and renewable energy from a wide range of low-cost carbon materials. The company's initial focus is the commercialization of the world's leading third-generation ethanol technology process to serve the global renewable fuels and the renewable energy markets. INEOS Bio is one of the global businesses in INEOS. For more information, visit www.ineosbio.com.
INEOS is the world's fourth largest petrochemical company and a leading manufacturer of commodity chemicals, specialty chemicals, biofuels, and oil products. Comprising 15 businesses, with a production network spanning 51 manufacturing facilities in 13 countries, (15 sites based in North America) the company produces more than 40 million tonnes of petrochemicals, and 20 million tonnes per annum of crude oil refined products (fuels). INEOS employs over 3000 people in the United States. For more information, visit www.ineos.com.
About New Planet Energy
New Planet Energy is engaged in the development and implementation of advanced biofuels and energy projects. For more information, visit www.newplanetenergy.com.
SOURCE INEOS Bio