BP officials speaking at the World Future Energy Summit in Abu Dhabi this week announced that they hope to open for bidding later this year proposals for building the estimated US$2 billion “Hydrogen Power Abu Dhabi” (HPAD) project.

        The project will tap nearby natural gas fields for conversion (via steam methane reforming) into hydrogen (for 400-megaWatts power output) and then use the byproduct carbon dioxide for enhanced oil recovery nearby.

        The project formerly involved the BP-Rio Tinto “Hydrogen Energy” joint-venture, but Rio Tinto pulled out of HPAD last year.

        The remaining partners in HPAD are BP and the Abu Dhabi government-owned Masdar project.

        “We’re on track to do an RFP [request for proposals] later this year, but not before we’ve agreed on commercial terms,” BP spokesperson Lucy Almond told Gasification News.

        Paul Lyndon Bryant, director of HPAD, was quoted in a Dow Jones report from the Energy Summit conference as saying that engineering, procurement and construction bids would be sought in the first quarter, “with contracts due to be awarded by the third quarter” of 2010.

        The HPAD plant would get natural gas from Abu Dhabi National Oil Co.

        “Several international contractors have already pre-qualified to bid for the contracts to build the plant, which will be located next to the existing Shuweihat 1 power station near Ruwais in Abu Dhabi emirate,” according to the report, citing Lyndon Bryant as the source. – Jack Peckham

        Texas-based Hyperion Resources officials foresee a 2011 ground breaking on the company’s proposed US$10 billion “Hyperion Energy Center” in Union County, South Dakota.

        The project would include a 400,000 barrels per day oil refinery and a 507-megaWatts integrated gasification combined cycle (IGCC) power plant that would feature carbon dioxide (CO2) capture and storage (CCS).

        Asked for an update on the project, here is what Hyperion spokesman Eric Williams told Hart Energy Publishing in an interview this month:

        “In the past two years, we have made great strides with the Hyperion Energy Center,” Williams said.

        “From the beginning, we’ve known the two largest permitting hurdles were the local zoning change and the air permit. As you know, by a 58-42 margin the voters of Union County affirmed the zoning change approved by the Planning and Zoning Commission and the County Commissioners, and by a 9-0 vote the Board of Minerals and the Environment approved our air permit.

        “With those two cornerstones, our focus shifts to two other, parallel tracks. On one track, we’re doing work necessary to forge ahead to obtain additional permits and consents – which while not as fundamental as the zoning change and air permit , are nonetheless necessary and important. Those range from a permit to discharge treated water to the local building permit.

        “On the other track, we’re working to further secure our crude oil supply and do other preparatory work on the business development side.

        “All this includes continued meetings and dialogue with local residents, elected and other public officials, business representatives and others.

        “As one member of our team says, the refinery will process 400,000 barrels of oil a day, and there seems to be about 400,000 details we need to attend to. We’re currently in one of those phases where the big announcements are infrequent, but the hard work and attention to detail are paramount.

        “Taking that approach is the best way to make certain that we’re breaking ground in 2011 and employing an average of 4,500 men and women during the construction phase, and 1,800 permanently when the facility begins production in 2015.

        “Getting to this point, and seeing the great progress has been extremely rewarding, especially since we’ve had such strong support from so many area residents along the way. We get a little closer every day, thanks to them.

        “Specific to water, we continue to make progress on the permitting front – both with regards to water we’ll need for operating the energy center and for discharging the treated, cleansed water that will return to the Missouri River system.

        “Our approach for every permit remains the same – we want to have the science and engineering well vetted, and have all our T’s crossed and I’s dotted before we submit the application to the permitting agencies. That’s where we’re at now – examining all our options and making sure the science and engineering are sound.

        “Thus, we don’t have specific dates on when those permit applications will be filed, but we will let you know when they are filed.

        “As for your inquiry on the need for new refining capacity: Long term, there’s a significant need for new heavy refining capacity in the U.S. as we trend toward heavier crude slates. We believe that will certainly be the case by the time we begin operations in 2015. That’s doubly the case for refineries that will produce ultra-low sulfur products and do so with fewer emissions per barrel than the competition.

        “Also, the demand is already higher than supply in the PADD 2 [U.S. Petroleum Administration for Defense District 2]. We’re currently having to import 1 million barrels a day of refined product to meet the PADD 2 demand.

        “Moreover, we believe that full-conversion refineries (like the Hyperion Energy Center) will benefit if there is further consolidation” in the refining industry.

        As for the IGCC portion of the project, here’s what Williams told us:

        Hart: How many megawatts (MW) capacity would this IGCC plant have, and how much of that would be exported to the grid?

        Williams: 507-MW. We will use all of the power on-site, thus none will be exported to the grid.

        Hart: Which gasification technology would be employed? GE? Siemens? ConocoPhillips? Other?

        Williams: Our current design is based on GE gasification technology. However, as technologies continue to improve, we will re-evaluate the different technologies during the next design stage.

        Hart: Which CO2 capture technology will you employ?

        Williams: The Rectisol acid gas removal unit – it has a 99% pure, high-pressure CO2 vent which can be captured and compressed for transmission into a pipeline to be transported to a sequestration location.

        Hart: Where will the CO2 go?

        Williams: Either sequestration in EOR (enhanced oil recovery), or in a saline aquifer deemed suitable for sequestration.

        Hart: What’s the estimated capex on the IGCC portion of the project?

        Williams: US$2 billion.

        Hart: Have you gotten any U.S. Dept. of Energy loan guarantees or grants (or are you in the queue for negotiating such loan guarantees or grants) for the IGCC and CO2-capture portions of the project?

        Williams: No.

        According to additional data posted to Hyperion’s own web-site, the CO2 capture portion of the project at the IGCC plant would increase total electrical load by 267-MW, which would “significantly increase fuel and energy use and would increase air emissions by approximately 175 tons of fine particulates (PM2.5), 86 tons of nitrogen oxides, 50 tons of sulfur oxides, 53 tons of carbon monoxide and 13 tons of volatile organic compounds per year,” according to the company.

        “The estimated capital costs for equipment needed for compression, pipeline transportation, and injection/storage are approximately $650 million. The levelized annual cost, including operating cost, is estimated to be approximately $300 million per year. The resulting avoided cost of CO2 CCS is approximately $43 per ton CO2 sequestered.

        “The use of CCS for the combustion sources at the [plant] would entail significant, adverse energy and environmental impacts due to increased fuel usage in order to meet the steam and electric load requirements of these systems. The estimated 7.4 million tons per year of CO2 captured from the combustion turbines and 26 process heaters would require the equivalent to 582 MW of electric power and steam generation capacity for capture, drying compression and transport to a suitable EOR site.” – Jack Peckham

        London-based Davy Process Technology (DPT) officials announced last week that they’ve entered into contracts with China-based power producer Datang Energy Chemical Co. Ltd. for a plant to produce synthetic natural gas (SNG) from coal gasification.

        “The scope of the project includes a technology license, basic engineering design, catalysts and support services for the methanation unit that converts synthesis gas to SNG,” according to DPT, a division of Johnson-Matthey.

        “The new plant will be located in Keshiketeng County, Inner Mongolia, and have a capacity of 12 million normal cubic meters per day of SNG produced from three parallel units, which will be constructed sequentially.

        “The SNG will be sent by pipeline and when it begins operation will provide a significant portion of the domestic energy needs of Beijing.

        “This project is the first of its type in China and represents a major step forward in the conversion of coal to SNG, which can be used far more easily and with far less environmental impact than coal or alternative energy sources.”

        Catalysts for the process are supplied by Johnson Matthey Catalysts. Such catalysts are already in use in SNG production at a commercial scale in the USA, according to the company.

        Datang Energy Chemical Co. Ltd. is a wholly owned subsidiary of the Datang Group, one of the largest power generation groups in China.

        Davy Process Technology owns a range of proprietary process technologies including methanol, fixed-bed Fischer Tropsch, SNG, butanediol, detergent alcohols, oxo-alcohols, industrial amines, ethyl acetate and purified terephthalic acid. – Jack Peckham

        Helsinki Energy officials last week announced a €3 billion (US$4.35 billion) investment plan aiming to slash carbon emissions 98% by 2030, in part by developing a biomass gasification plant.

        The Finnish power producer, owned by the city of Helsinki, is counting on government subsidies for wind and biomass to complete the plan, according to a Reuters report.

        Chief Executive Seppo Ruohonen was quoted as saying that the “it is a development plan; we have made a concrete plan with targets until 2020, and a draft for the following 10 years.”

        Besides retrofits to enable biomass combustion, other schemes would include wind-power and “building a new gasification plant for forest by-products and a multi-fuel plant to replace a current unit,” according to the report.

        The “green” power schemes ultimately would cost consumers up to 50% more for district heating, Ruohonen cautioned. – Jack Peckham

        The Summit Power integrated gasification combined cycle (IGCC) project is moving forward following what’s described as a “gentlemen’s agreement” to buy 600 acres in Penwell, Texas, for the proposed $1.7 billion plant, according to a report from the Odessa (Texas) American.

        The report quoted Gary Vest, economic development director for the Odessa Chamber of Commerce, as saying a purchase price agreement has been finalized with the property owner.

        “The 400-megaWatt plant, which is designed to capture 90% of the carbon dioxide it produces, is expected to begin construction late this year,” according to the report.

        The board of the Odessa Development Corp. and the Odessa City Council must still approve the land deal, according to the report. – Jack Peckham

        Pakistan government officials last week released Rs984.9 million (US$11.58 million) for underground coal gasification (UCG) development schemes in the Thar coal region, supervised by nuclear scientist Samar Mubarakmand.

        According to a report from Dawn (Pakistan), “the scheme is aimed at producing coal-gas for power generation. The UCG is the most important clean coal technology of the future with worldwide application.”

        Sindh region Secretary of Mines and Minerals Ajaz Ali Khan told Dawn that geological data had been shared with Mubarkmand “to complete desktop studies to prepare gasification designs.”

        The mines secretary “said that technical designs of the gasification schemes as well as pre-fabrication camp design had been completed and [Mubarakmand] was planning to engage Chinese rental horizontal drilling expert firms for carrying out drilling” while “preliminary layout plan of the camp had been prepared while design for underground gasifier was in progress.”

        “Directional drilling linkage of coal seams, a widely used technology in petroleum industry, was being considered” for the target coal seam. The secretary added that he “hoped the project would be completed in 12 to 18 months.” – Jack Peckham

        Sasol and Tata Steel officials announced Jan. 18 that they want to build a 3.6 million tons/year (80,000 barrels/day) coal-to-liquids (CTL) plant in Orissa, India.

        According to a report from Economic Times (India), Tata Steel vice chairman B. Muthuraman and Sasol Synfuels managing director Ernst Oberholster met with the Orissa chief minister Naveen Patnaik to discuss the proposed project.

        “Speaking to reporters after their meeting with the chief minister, Naveen Patnaik, Muthuraman claimed that the proposed project would be first of its kind in India and second in the world,” according to the report.

        The project, if built, would require eight years to finish, with a planned 2018 start-up, according to the report.

        CTL products from the plant would include Fischer-Tropsch diesel, naphtha, liquefied petroleum gas, tar, sulfur and ammonia, according to the report. A 1,600-megaWatt captive power plant also would be built at the site.

        According to a separate Financial Express (India) report, the project would “require about 28 million to 31 million tons of coal per annum [and the plant] will source the coal from Arakhpal and Srirampur mines of the Talcher coal belt.” – Jack Peckham

        Utah-based Headwaters officials announced Jan. 19 the signing of an alliance agreement with Axens to market direct coal liquefaction (DCL) technology “alone or in combination with refinery residues or biomass.”

        Both companies can trace their experience to U.S. Dept. of Energy-funded DCL research and subsequent development by Hydrocarbon Research Inc. (HRI).

        Under the new alliance deal, “the two companies will combine their technologies and licensing activities for CTL projects world-wide,” according to Headwaters.

        The new “Alliance DCL” aims to prove a “single-source solution for producing ultra-clean transportation fuels from coal – whether alone or in combination with other low-cost or renewable feedstocks, such as biomass and refinery residues,” according to the company.

        “Headwaters brings its slurry catalyst technology and its extensive CTL research facilities” to the deal, while “Axens will contribute its ebullated-bed ‘H-Coal’ process and proprietary catalyst. Both evolved from a common background and DCL technologies developed by HRI, which were commercialized with support from the U.S. Department of Energy and industrial clients.

        “Building on decades of experiences in DCL and a database on a wide range of coals, both companies have continued to increase liquid yields, improve energy efficiency, lower production costs and reduce the environmental footprint (carbon dioxide emissions and water consumption).

        “Alliance DCL will market the technologies and anticipates offering project-specific services, from feedstock characterization, pilot plant evaluation, feasibility studies and engineering design through plant start-up and ongoing technical support.

        “Axens will also provide the coal liquids upgrading technologies necessary to achieve finished fuel specifications.

        “Both companies provided technology packages and basic engineering contributing to the successful construction and start-up of the first commercial direct coal liquefaction plant [the Shenhua DCL plant] in China in December 2008. Several new DCL projects are currently in development by the alliance.” – Jack Peckham

        U.S. President Barack Obama late last month signed a defense appropriations bill that includes a US$2.4 million provision for a carbon capture and storage (CCS) study for a proposed coal-to-liquids (CTL) Fischer-Tropsch jet-fuel plant in Alaska.

        The study, promoted by U.S. Rep. Don Young (R-Ak.), aims to determine “whether energy companies could use carbon storage, or ‘sequestration,’ from a coal-to-liquid fuel plant in Fairbanks to improve oil production on the North Slope,” according to a report from the Fairbanks (Alaska) News-Miner.

        “Many North Slope wells inject liquid or gas into the ground to force more oil to the surface. The project would determine whether injecting carbon dioxide in place of current techniques would improve oil production while preventing carbon emissions.

        “The study also would indirectly review whether that enhanced oil production would address questions about emissions from a coal-to-liquids plant, which are seen as a potential hurdle.”

        Under U.S. law, federal agencies can’t purchase alternative fuels with more greenhouse gas emissions than conventional fuel, the report pointed out. That would prevent the U.S. Air from buying CTL jet fuel unless CCS is employed at the plant.

        The CTL project would be “extremely important for bringing cheap fuel to our military bases and to Alaskans,” Young said in a statement.

        Alaska agencies two years ago funded a $550,000 study of the proposed CTL plant, while former U.S. Sen. Ted Stevens (R) in 2008 included $10 million for further study . But the Air Force eventually routed the money toward other projects, the report noted (see Gasification News 05/27/2009, 11/26/2008). – Jack Peckham

        In the defense spending bill signed by U.S. President Barack Obama last month, US$3.9 million is earmarked for research on a “HyMelt” coal gasification technology being pursued by American Freedom Fuels.

        According to a report from the Lexington (Kentucky) Herald-Leader, American Freedom Fuels is owned by Robert Addington, a campaign donor to two Kentucky politicians, U.S. Sen. Jim Bunning (R) and U.S. Rep. Geoff Davis (R), both of whom included the “HyMelt” funding earmark in the defense spending bill.

        The HyMelt process is described on the web-site of another company, EnviRes LLC, based in Lexington, Kentucky. Addington has a phone number at that company, and a source familiar with the company told us that he is a part-owner.

        “Unfortunately, American Freedom Fuels has a difficult time finding private investors to put money into its research,” the Herald-Leader report said.

        The report quoted Leslie Paige, spokeswoman for Citizens Against Government Waste, as saying that if Addington “can’t get enough money in the private sector for his companies, [then] it shouldn’t be up to the members of Congress to step in and pick winners and losers using money that isn’t theirs. That’s why we have a free market, to decide which ideas will get capital.”

        Addington didn’t return our call for comment on the report. But denied to the Herald-Leader that his political connections help his companies get public research funds. Overall, Addington’s family has given more than $144,000 in state and federal political donations in the last decade, according to the report.

        Sen. Bunning’s spokesman Mike Reynard was quoted in the report as saying that the senator’s interest lies solely in clean-coal development. “If it’s coal gasification, that would be his interest in it,” Reynard was quoted as saying.

        Rep. Davis spokeswoman Alexandra Haynes likewise was quoted as saying that the reason for the earmark was to boost prospects for the U.S. military to be able to use U.S. coal as a transportation fuel.

        “Development of a viable synthetic fuel has the potential to eliminate [the Defense Department’s] historic reliance on costly petroleum from foreign sources,” Haynes was quoted as saying.

        According to EnviRes, the HyMelt technology “utilizes molten iron as a reaction medium. It promises to be the ‘next generation’ in gasification.

        “HyMelt advantages include substantially lower capital and operating costs, and greater operating flexibility and efficiency. It offers the feedstock flexibility to gasify a broad range of coals, petroleum coke, heavy oil, and biomass with greater efficiency than current technologies.”

        Burt Davis, a widely-known coal-to-liquids expert at University of Kentucky’s Center for Applied Energy Research, is a technical advisor to EnviRes.

        Davis told us in an interview this month that the HyMelt technology, first developed by Ashland Oil decades ago, still would need more development work prior to full commercialization.

        Public funding often is necessary to move certain technologies along the path toward commercialization, Davis told us. One reason: Companies with existing gasification technologies won’t necessarily put funding into alternative, emerging technologies, he added.

        Among the keys to potential HyMelt development: Testing at higher-than atmospheric pressure and scale-up from prior pilot-plant studies in Sweden, he explained. – Jack Peckham

        Alaska state Senators Lesil McGuire (R) and Bill Wielechowski (D) recently announced that they’ll cosponsor new legislation this year aiming to promote construction of gas-to-liquids (GTL), coal-to-liquids (CTL) and biomass-to-liquids (BTL) fuels plants in the state.

        The legislators recently returned from a study tour in South Africa where experts explained the potential for GTL, CTL and BTL fuels, “all three of which have significant potential for development in Alaska,” according to Sen. McGuire.

        The senators decided to make the study tour “following the October [2009] announcement by the Cook Inlet Region, Inc. (CIRI) of their plan to develop an underground coal gasification (UCG) project on the west side of Cook Inlet,” according to McGuire.

        “CIRI’s underground coal gasification project is an exciting development for South-central Alaska and indeed for the entire state,” said McGuire. “And more exciting yet is the promise for other types of synthetic fuels development in Alaska.”

        According to the senators, “the most recent assessments conducted by the U.S. Geological Survey estimate 37.5 trillion cubic feet of natural gas on Alaska’s North Slope and 5.5 trillion tons of coal resources on the North Slope, Interior, and Cool Inlet regions of Alaska.”

        “A North Slope GTL plant able to transform our massive stores of natural gas into value-added synthetic fuels that could be shipped through the Trans-Alaska Pipeline System could be key in extending the life of that all-important lifeline of our state’s economy,” said McGuire, adding that synthetic fuels produced from Cook Inlet coal could also play a role in addressing the issue of dwindling Cook Inlet gas supplies.

        The senators said that they’re “currently working on a package of state incentives to spur the development of [GTL, CTL and BTL] in Alaska. They intend to introduce the package prior to the January 19th beginning of the legislative session.”

        On a related front, Sen. Wielchowski last year released a research report claiming that Alaska’s oil refiners are “gouging” the state’s consumers with fuel prices much higher than what oil refiners charge in the “lower 48” U.S. states. Presumably, in-state GTL/CTL fuel producers would provide new competition to the oil refiners. – Jack Peckham

        Rioting at Chevron’s joint-venture “Escravos” gas-to-liquids (GTL) plant construction site on Jan. 6 prompted Nigerian soldiers to shoot into a crowd, killing two construction workers.

        According to an Associated Press account of the incident, the riots resulted in stoppage of construction and “several buildings destroyed.”

        Linus Chima, a Delta State government spokesman, was quoted as saying that the riots were triggered by a “ minor disagreement that got out of hand.”

        One of 15 buses in a convoy traveling through the plant site “failed to stop at a checkpoint and the driver got into an argument with security guards at the plant's main gate,” according to the report. “A group of Nigerian soldiers detailed to guard the plant arrived at the same time and fired shots at the crowd to try to get them to disperse,” causing the deaths, according to the report.

        “Chima said the fighting was not related to the activities of a militant group that operates in the oil-rich Niger Delta. Militants there have attacked pipelines, kidnapped petroleum company employees and fought government troops since January 2006. They demand that the federal government send more oil-industry funds to Nigeria’s southern region, which remains poor despite five decades of oil production.”

        The GTL project is now mostly owned by Chevron and Nigerian National Petroleum Corp., with Sasol having drastically reduced its equity interest in the project.

        The estimated US$6 billion, 34,000 barrels per day plant is scheduled to start production in 2012, producing Fischer-Tropsch fuels, chemical feedstocks and waxes. – Jack Peckham

        Washington, D.C.-based Transportation Research Board’s Airport Cooperative Research Program (ACRP) officials announced Jan. 6 that they’ve issued a request for proposals (RFP) to prepare a handbook on “drop-in” alternative jet fuel production and delivery.

        The handbook would “summarize issues and opportunities related to locating an alternative jet fuel production facility, and its storage and distribution requirements.”

        RFP’s are due February 25, 2010. A complete description of the proposal is available at this Web site: link to source document.

        TRB also cites a recent U.S. “National Aeronautics Research and Development Plan” report (see: link to source document) to define “alternative” jet fuels.

        According to that report, “a clean-burning, sustainable renewable fuel that contains few aromatic components and sulfur, operates at high temperature, and produces little particulate emissions is desired.”

        However, “the most reasonable near-term choice is the use of [U.S.] indigenously available feedstocks, such as natural gas, coal, oil shale, and petroleum coke, to produce drop-in replacements/supplements for petroleum-derived jet fuels,” according to the report.

        “Key challenges to moving forward with commercial use of alternative jet fuel include formation of an effective business plan addressing production at marketable prices and quantities, deliverable at the appropriate point in the supply chain,” according to the ACRP summary. – Jack Peckham

        Vancouver, B.C.-based Syntec and University of North Dakota Energy and Environmental Research Center (EERC) officials announced Jan. 7 a new scheme to convert non-food biomass and waste into bio-butanol, which is a proposed “green” gasoline blendstock.

        “The core process utilizes Syntec’s high-performance catalyst technology in conjunction with an upgrading process exclusively licensed from the EERC Foundation,” according to Syntec.

        Syntec will employ its own gasification technology. For the subsequent butanol conversion from syngas, Syntec is teaming-up with EERC on the synthesis technology.

        Because butanol’s hydrocarbon chain is twice that of ethanol, it is more similar to gasoline than it is to ethanol and thus “constitutes a superior fuel,” according to Syntec.         Michael Jackson, Chief Executive Office of Syntec, cited EERC as “a leader in the field of biomass gasification and liquefaction” which can “assist Syntec in our quest toward commercialization.”:

        “We are not aware of any other company in the world that is developing a thermochemical process utilizing nonfood materials to predominantly produce bio-butanol. In a joint venture with DuPont, BP is building a demonstration plant in the United Kingdom to convert sugar into bio-butanol. This is concerning, as it uses food resources to produce fuel,” Jackson said.

        Syntec officials say they have developed a thermochemical process that breaks down municipal solid waste, wood, and agricultural waste into reactive components that form with Syntec’s patent-pending catalysts to produce ethanol, methanol, propanol, and butanol. – Jack Peckham

        Hawaii-based ClearFuels Technology officials announced Jan. 19 that they’ve hired BNP Paribas to act as financial advisor for senior secured debt financing for proposed biomass to liquids (BTL) Fischer-Tropsch diesel and jet-fuels projects.

        “The agreement calls for BNP Paribas to assist and support ClearFuels with the analytical work and due diligence regarding ultimate debt financing for ClearFuels' commercial projects,” according to ClearFuels.

        “These services would be directed, in part, to create financing plans for the commercial projects. BNP Paribas would consider arranging and acting as lead lender for the senior debt financing at market terms for the first three commercial projects.”

        ClearFuels recently announced it could receive up to US$23 million as a grant from the U.S. Department of Energy (DOE) to construct a biomass gasifier at Rentech’s Energy Technology Center in Colorado and integrate it with Rentech's existing Product Demonstration Unit.

        Rentech has a 25% strategic ownership investment in ClearFuels.

        “ClearFuels expects to complete the demonstration project in 2011 and move directly to construction of commercial projects in the second half of 2011,” according to the company.

        “The ClearFuels gasification and Rentech Fischer-Tropsch conversion technologies have been developed, tested and improved independently over the past 15 years. The unique integration of these technologies represents a breakthrough in the design of versatile biofuels production plants, promising a definitive advance in thermochemical biofuels conversion efficiency and flexibility, making ClearFuels and its partners leaders in producing multiple liquid fuels from the same biorefinery.”

        ClearFuels has begun development of multiple commercial-scale biomass-to-energy projects in the southeastern United States, Hawaii and internationally.

        “These projects are expected to use an integrated ClearFuels-Rentech design and be co-located at sugar mills, and at wood and other biomass processing facilities,” according to the company. – Jack Peckham

        Officials of Wisconsin-based Flambeau River Biofuels (FRB) on Jan. 19 signed an engineering, procurement and construction deal with AMEC and Miron Construction for a proposed US$250 million biomass gasification and Fischer-Tropsch (FT) diesel plant in Park Falls, Wis.

        FRB President Bob Byrne told Hart Energy Publishing in an exclusive interview that if financing is completed by this fall, then the 1,000 barrels/day biomass-to-liquids (BTL) plant could be in full production by as early as 2013, making FT diesel and wax.

        Feedstock for the plant would include sawmill residue and other “unmarketable” woody biomass, including 600 tons/day of waste wood currently used for a boiler at the adjacent Flambeau River Papers pulp mill.

        The new plant will be able to generate about $10 million/year worth of steam for the adjacent mill, which has overlapping ownership of FRB.

        ThermoChem Recovery International will supply the biomass gasification technology, while Oklahoma-based Emerging Fuels Technology will supply the FT synthesis technology.

        A pilot plant is already running at Southern Research Institute in Durham, North Carolina, he said. About two-thirds of the minimum 1,000 hours of testing has been completed.

        Meantime, FRB has submitted a loan-guarantee application (totaling about $200 million) to U.S. Dept. of Energy (DOE), he said. DOE officials told FRB that processing of the application should take a couple of months, once a required credit assessment on FRB from a major rating agency has been completed. – Jack Peckham

        A US$950,000 grant included in the federal Energy and Water Appropriations Act of 2009 will cover about one-third of the costs for a feasibility study, permitting, design and pre-construction planning for a gasification-based waste-to-energy (WTE) project being developed in International Falls, Minnesota.

        According to U.S. Rep. Jim Oberstar (D-Minn.), the funds will aid what’s known as the “Recap” WTE project, run by the Koochiching Economic Development Authority (KEDA).

        “This plant will superheat municipal waste, converting it to energy. The process is clean and leaves no waste products,” Oberstar said.

        When completed, the Recap WTE plant will process 100 tons of municipal waste a day to generate 40,000 Btu’s per hour of synthetic gas, and 40,000 pounds per hour of steam for industrial use or electrical generation (see Gasification News 12/10/2008).

        In a separate report from the Daily Journal (International Falls, Minn.), KEDA director Paul Nevanen was quoted as saying that Coronal, the project developer, now plans to meet with local officials to discuss project plans.

        “A feasibility study is currently being reviewed by the project’s engineering firm. After the review process has been completed, the study will be presented to the county for further assessment,” according to the report.

        “Nevanen and Koochiching County Commissioner Mike Hanson, along with other members of the project team, recently toured a similar Westinghouse plasma gasification facility in Pennsylvania. Hanson explained that this federal grant, along with similar federal funds already approved for the project, would need to be matched with state funds.

        “The match could come from a bonding bill, which Hanson said he expects to be discussed near the start of the Feb. 4 [Minnesota] legislative session.

        “Hanson also told the Journal that the project has also received $400,000 federal money and a $400,000 state match. Estimated total costs when the project began were around $30 million.” – Jack Peckham

        While Canada’s Aboriginal Cogeneration Corp. (ACC) won a crucial air permit this month from the British Columbia Ministry of Environment to build a railroad-tie gasification plant, residents of Kamloops, B.C., are trying to block the project.

        As noted in a recent report from the Daily News (Kamloops, B.C.), a local group called Save Kamloops aims to file an appeal with the Environmental Appeal Board of B.C. to try to stop the project.

        “The project – which represents a Cdn$12 million [US$11.5 million] investment and will employ about two dozen people – was opposed both by City Council and Save Kamloops,” according to the report.

        Save Kamloops spokesperson Ruth Madsen was quoted as saying that toxins in the creosote-laden railway ties could cause cancer and birth defects.

        “Creosote should not be burned in any community anywhere in the world,” Madsen was quoted as saying.

        Meantime, Kamloops City Councilor John DeCicco was quoted as saying that ACC still must apply for a local business permit. “If they meet the standards, they will get a license,” DeCicco was quoted as saying said.

        According to a separate report from Kamloops This Week, the air permit granted to the project “has by far the strictest emissions standards of any permit within Kamloops, according to Ministry of Environment [MOE] officials.”

        ACC aims to grind up and then gasify millions of creosote-treated railroad ties in order to produce 2 megaWatts of renewable electricity (see Gasification News 9/2/2009, 5/27/2009), tapping technology first developed at University of North Dakota’s Energy & Environmental Research Center.

        ACC “has a 10-year contract with Canadian Pacific Railway to recycle up to 4 million ties” for gasification, according to the report.

        “Under the permit, the ACC will be required to have continuous emission monitors and provide data in a monthly report to the MOE. Once the plant starts with gasification, the ACC must bring in a third-party independent fact-tester to test for a whole range of contaminants.”

        However, Kamloops City Councilor Denis Walsh was quoted as saying that “I think it’ outrageous that Kamloops is being used as a testing ground for an unproven technology.”

        But ACC President Kim Sigurdson was quoted in a separate Daily News report as saying that “we have by far the only technology in the world to use ties to create power and heat” without health-damaging emissions. “We're going to find a home for these [railroad] ties and clean this mess up.”

        Despite local opposition, another group supports the project, according to the report.

        Bill McQuarrie, executive director of the Interior Science and Innovation Council, was quoted as saying that the air permit approval was “the right decision” based on the technology.

        McQuarrie added that MOE’s research leading to the permit decision was “exhaustive,” and that a strict air monitoring program will be put in place.

        Sigurdson added that ACC expects one gasifier to be commissioned at the site in August or September 2010, with a second unit following soon after. Startup would follow about 60 days later, he estimated.

        Electric output will go to the BC Hydro grid, he added.

        “Other communities are expressing interest in the concept, he said, and it would be especially useful for northern communities because existing diesel generators can be adapted for syngas created by the process,” according to the report.

        Gasification of ties is “a huge step towards safely eliminating” the contamination caused by waste ties, McQuarrie added. – Jack Peckham

        Millinocket, Maine-based RE-Gen LLC will get a US$903,000 grant from the U.S. Dept. of Energy (DOE) for a biomass gasification furnace factory with capacity for 250 systems per year.

        According to U.S. Rep. Mike Michaud (D-Maine), “this project will provide a significant economic boost to the Millinocket area once started.”

        DOE officials said on Jan. 11 that the grant to RE-Gen, a start-up company, is just one of 183 grants in 43 U.S. states, tapping $2.3 billion of “American Recovery and Reinvestment Act” funds.

        According to DOE, qualifying manufacturing facilities getting the grants include those making solar, wind, geothermal, or other renewable energy equipment; electric grids and storage for renewables; fuel cells and microturbines; energy storage systems for electric or hybrid vehicles; carbon dioxide capture and sequestration equipment; equipment for refining or blending renewable fuels; equipment for energy conservation, including lighting and smart grid technologies; plug-in electric vehicles and components, such as electric motors, generators and power control units. – Jack Peckham

        San Francisco-based SynGest officials announced Jan. 11 that they’ve hired Stern Brothers to help them raise capital for a proposed US$105 million corn-cob gasification scheme that would produce ammonia fertilizer.

        “While we intend to analyze a broad range of financing options, our primary focus will be on loans and loan guarantees, tax credits, taxable and tax-exempt bonds, and other forms of private and institutional investment,” says John May, Managing Director at Stern Brothers.

        “Our ultimate objective is to put together the lowest cost long term financing package for this first-of-its-kind project. We have reviewed SynGest’s proprietary technology, and are confident that it can be put to good and profitable use in Iowa and beyond.”

        Once SynGest launches its first bio-ammonia plant in Iowa, the company “intends to build similar fertilizer mini-plants in other parts of the country. Discussions regarding emerging opportunities are underway with interested parties in Ohio, Oregon, Michigan and Minnesota,” according to SynGest.

        Stern Brothers has a U.S.-based practice in renewable energy finance representing public and private company developers and operators seeking non-recourse project financing in the biomass to fuels and chemicals, ethanol, biodiesel, methane gas and biomass-to-energy sectors, according to the company. – Jack Peckham

        Having already flown a commercial jet last fall with gas-to-liquids (GTL) Fischer-Tropsch (FT) jet fuel blend, now Qatar Airways aims to develop a biomass-to-liquids (BTL) FT fuel program.

        The new deal, announced Jan. 10, involves Qatar Airways, Qatar Petroleum, Qatar Science & Technology Park and U.S.-based biofuel market consultant Verno Systems, with the support of Airbus, according to Qatar Airways officials.

        In mid-2009, the partners embarked upon a “comprehensive and detailed feasibility study on sustainable BTL jet fuel and possible by-products such as biodiesel,” according to a Qatar Airways press release.

        “This study looked at all available bio-feedstocks that would not affect the food or fresh water supply chain. It also looked at existing and future production technologies with a viability analysis.

        “Based on the result of this in-depth study, the partners have agreed to establish the “Qatar Advanced Biofuel Platform,” which will lead activities in the following four areas:

        1. A detailed engineering and implementation plan for economically viable and sustainable bio fuel production;

        2. A bio fuel investment strategy;

        3. An advanced technology development program;

        4. Ongoing market and strategic analysis.”

        The latest scheme represents “another important step to reach carbon neutral growth in the aviation sector by 2020,” added Tom Enders, Airbus President and Chief Executive Officer. – Jack Peckham

        Calgary, Alberta-based Alter NRG officials announced Jan. 6 that they’ve started-up a biomass-conversion plasma-gasification system at their Westinghouse Plasma Co. (WPC) division in Madison, Pennsylvania.

        That plant is converting non-food biomass into synthesis gas, which in turn is converted into cellulosic ethanol at an adjacent facility operated by Coskata, Inc.

        The so-called Project Lighthouse scheme (gasification followed by ethanol production) is touted as being “significantly better than the current ethanol industry” on net energy efficiency, according to the company.

        “The feedstock-flexible process utilizes non- food biomass, thereby providing an opportunity to produce fuel-grade ethanol in greater quantities and at a lower cost point than that produced from food-based sources” such as corn or sugar, according to the company.

        “This approximate $25 million semi-commercial facility constructed by Coskata will increase the utilization rate of the WPC gasification facility and is anticipated to provide approximately $2.5 to $3.0 million in revenue to [Alter NRG] from the production of specified syngas during the first half of 2010,” according to the company.

        The gasification section of the demonstration plant has been modified to produce “clean, tar-free synthetic gas tailored for the Coskata process,” according to the company.

        “The syngas produced from biomass is expected to be suitable for other energy production processes, such as the production of power from a gas turbine.”

        Currently, the peak volume of biomass processed per day at the facility is 18 tons per day.

        “Working alongside Alter NRG has allowed us to showcase the successful scale-up and commercial viability of our process,” according to Coskata Chief Executive Officer Bill Roe. “Project Lighthouse has been designed to allow direct scaling to commercial plants capable of producing 50 million to 100 million gallons per year,” he added. – Jack Peckham