NEW YORK, Nov. 30, 2016 /PRNewswire/ -- NextCoal International, Inc. ("NCI"), an emerging producer of high-value, woody biomass-based renewable fuels, urged the incoming Trump administration to suspend the unregulated trade in electronic credits called Renewable Identification Numbers (RINs) that threatens America's crucial oil refineries with financial ruin and the nation with a ruinous rise in gasoline prices.
NCI also called for a $2-per-gallon Bio-Oil Co-Processing Tax Credit that would incentivize oil refineries to co-process woody biomass-based bio-oil (pyrolysis oil) in their Fluidized Catalytic Cracking (FCC) units in order to send renewable products downstream and support job-creating manufacturing of renewable fuels made from woody biomass derived from responsible forestry operations and trees destroyed by storms, wildfires, drought and invasive insects. The credit, which would be revenue-neutral due to tax revenues from added wage income, contractor and manufacturing profits, would substantially increase the refinery crack spread (crude oil purchase price-finished products selling price differential), somewhat compensating refineries for staggering losses caused by the opaque RINs trade.
"Tax-advantaged bio-oil co-processing could be the answer to an unprecedented environmental disaster and fire threat—over 100 million dead trees in California caused by drought and beetle infestation," said NCI Chairman Jonathan Braun. "The tax credit would provide oil refineries with an incentive to support renewable liquid fuels in a way that would benefit the environment and create and preserve jobs in rural and other areas in a broad range of industries, including manufacturing, forestry, energy, engineering, construction and transportation."
NCI plans to build job-creating Rural Economic Development Renewable Fuels Centers in California, New York, Florida, Oklahoma and other states to manufacture bio-coal for export to Japanese and other overseas power plants and bio-oil for oil refineries and other industrial customers. Bio-coal is a drop-in fossil coal substitute for co-firing in coal power plants. Bio-oil is a petroleum substitute that can be co-processed in oil refineries or combusted to heat buildings or generate electricity.
Bio-oil is produced by a process called pyrolysis; bio-coal, by torrefaction, which is a mild form of pyrolysis. NCI's selected bio-coal and bio-oil technologies are commercially proven and guaranteed by large engineering, procurement and construction companies. Woody biomass, the feedstock for manufacturing both bio-oil and bio-coal, is an abundantly available, rural American resource.
Contact: Jonathan Braun, 802-375-7504
Website email: http://www.nextcoal.com/contact
SOURCE NextCoal International, Inc.