BlueFire Renewables has entered into a memorandum of
understanding (MoU) with China Huadian Engineering Co. to
finance its integrated power plant and biorefinery in Fulton, Miss., and up to
5 additional plants in the US.
Under the agreement, 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 US. The deal also
contemplates the formation of a 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, CEO.
China Huadian Engineering Co. 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," said
Huadian Engineering Co.s collaboration with BlueFire
Renewables 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.
"The goal of the joint program is to identify important
emerging practical technologies with significant potential for
broad deployment in China, bring these technologies to
commercial scale in the US and apply lessons learned in meeting
the energy and low carbon development needs of China,
the United States and globally," said Mitchell Stanley,
president of NCSD.
"Cellulosic ethanol manufactured from biomass
and not from food crops is mandatory for China, and BlueFire
offers a scalable efficient approach to producing numerous
valuable industrial chemicals from domestic sources rather than
from imported petroleum."
Once 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, it
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 gal/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 &