Has KiOR reached a purchase agreement for its product? (Update)
Bluefire Renewables Inc., the California-based biofuel company that is building a facility in Fulton, has reached three major milestones recently.
The company has reached a feedstock agreement that will ensure it has the biomass it needs to produce ethanol, it has found a buyer for the ethanol, and it has let the contract to actually construct its facility.
Another biofuel company that plans to build in Mississippi, KiOR, will not receive any of the $75 million in benefits the Legislature approved for it in late summer until KiOR has reached a purchase agreement with an oil company (or companies) to buy the renewable crude oil and refine it.
KiOR CEO Fred Cannon said in late August that he and his team were “in final negotiations” with a buyer. With that in mind, Magnolia Marketplace has been trying since Monday morning to find out if an agreement has been finalized; and if not, how close one is to becoming finalized. Calls and emails to a KiOR spokesperson have not yet been returned. Gov. Haley Barbour’s spokesman Dan Turner was not exactly sure one way or the other. We’re currently awaiting a response from the Mississippi Development Authority.
It would seem nothing can move on this project until KiOR has found somebody to buy and refine the re-crude it plans to produce from timber. The bulk of the state money approved for the project will go toward construction costs and the equipment that will stock it.
So has a purchase agreement been reached? It’s not a hard question. When we get an answer, we’ll let you know.
UPDATE: A KiOR spokesperson just emailed Magnolia Marketplace and said there had been no off-take agreement reached, and that discussions between the company and potential buyers remain ongoing.
No firm timetable exists for executing a deal, but it’s our guess that they’d like to get one done as soon as possible.