Profit-sharing agreement signed for biomass plant
Published: November 30,2010
HOUSTON, Texas — National Clean Fuels announced today that the company signed a profit participation agreement with the Center for Environment, Commerce & Energy (The Center). The two organizations are working together closely to build a biomass-to-electricity (BTE) plant in Port Gibson, Miss.
According to the agreement, National Clean Fuels will provide the Center with monthly project support payments in exchange for a percentage of the net profits generated by the Port Gibson BTE plant once it becomes operational. The Center and National Clean Fuels signed a term sheet earlier this month.
Plans call for the new Port Gibson BTE plant to generate electricity by gasifying sawdust and woodchips to power a massive turbine. NACF inked a letter of intent with the City of Port Gibson in September to devise plans for biomass and solar-energy production in and around the municipality as well as other potential means of green energy production. The Center will assist with the planning and implementation of the project.
The Center for Environment, Commerce & Energy is a private interest group that promotes and develops efficient use of natural resources and environmental safeguards.
Currently, NACF and The Center are working to obtain an interconnection agreement with local providers, which would allow the BTE generation facility to redistribute energy along the Port Gibson-area power grid.
Thanks in part to its natural abundance of woody biomass, the State of Mississippi has recently made increasing clean-fuel production and usage a priority. State lawmakers have authorized $51 million in new incentives to help bring three biofuel plants to the state. These incentives, along with an existing $30 million loan from the state, add up to an $81 million incentive package.
National Clean Fuels is dedicated to developing cleaner alternatives to fossil fuels. The company commercializes clean energy technology in a sector that is growing to compete in the energy industry, which contains the Sasol Ltd. (NYSE: SSL), Hess Corporation (NYSE: HES), Imperial Oil (NYSE: IMO) and Marathon Oil (NYSE: MRO).
Source: Business Wire
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