– BlueFire Renewables lands financing MOU for Mississippi bioenergy project, 5 others
Biofuels Digest reports today that California-based BlueFire Renewables has entered into a Memorandum of Understanding with China Huadian Engineering Co. to finance its integrated Power Plant and Biorefinery in Fulton, Miss. and up to five additional plants in the United States.
Under the MOU, Huadian will invest equity by purchasing an interest in the BlueFire Fulton Renewable Energy LLC and, optionally, debt for the Fulton project to complete financing and construction for this cellulosic ethanol facility. Additionally, upon the initial success of the Fulton Project, the agreement intends for Huadian to invest equity and/or provide debt for the development of five additional plants in the United States. The MOU also contemplates the formation of a Development Joint Venture to develop similar projects in China.
“This agreement provides the foundation to finance the Fulton facility and a significant number of additional plants in the US and in China and will enable BlueFire Renewables to create much needed jobs — starting with about 700 jobs for the construction of the Fulton plant,” said Arnold Klann, President & CEO.
China Huadian Engineering Co. LTD is one of China’s largest utilities, generating more than 75,000 MW of power in China. Its parent company, China Huadian Corporation has over $51 billion in total assets.
“Having such a strong partner, both technically and financially, backing up BlueFire, is a significant advancement in bringing BlueFire’s business plan to fruition,” added Klann.
Huadian Engineering Co. LTD.’s collaboration with BlueFire Renewables, Inc. is, in part, a result of the introduction and low carbon development program launched jointly in late 2009 between the National Center for Sustainable Development in Washington, DC and the CDM Fund (supervised by the Ministry of Finance) in Beijing, China.
Once the Memorandum of Understanding terms are finalized in a Definitive Agreement, BlueFire will move toward financial closing allowing the company to accelerate and complete construction of its first commercial cellulosic ethanol facility in Fulton, Mississippi. First phase of construction began in December of 2010, and was completed in June 2011 with the remaining construction dependent on final financing for the complete project. The Fulton project utilizes green and wood wastes available in the region as feedstock for the production of approximately 19 million gallons per year of cellulosic ethanol sold under long-term contract to help fulfill the demand under the Federal Renewable Fuel Standard established under the Energy Independence & Security Act.