Alliance Bio-Products Inc. has received approval from the US Department of Agriculture (USDA) Office of Rural Development for the collateral purchase of the closed ethanol facility in Indian River County, Florida. The approved purchase includes the fully functional plant, 143+ acres that the plant resides on, and all related equipment and vehicles.
The company made an offer to purchase the 8 million gal./yr ethanol facility with the intention of converting the current process into its patented Cellulose to Sugar (CTS) process under an agreement with Alliance BioEnergy.
“Through renovation and the implementation of our revolutionary CTS process, we’ll be able to expand our production capacity while also shortening turnaround times – a key to ramping up production quickly and bringing our product to market at scale,” said Ben Slager, Chief Technology Officer, Alliance Bio-Products, Inc. “We have long had the most innovative technology on the market in regards to biofuel production, but did not have the means to fully utilise its potential until now. Combining our industry leading technology with a plant of this capacity will allow us to meet the growing needs of the market.”
The Company’s patented CTS process allows it to produce biofuels for less than US$1 per gallon that are 100% CO2 neutral, because of the process, and have 85-95% less greenhouse gases than petroleum-based products. Bio-Products expects it will be able to begin production at the plant by summer of 2018, potentially generating US$25 million in EBITDA and then will look to double capacity to 16 MMGY, potentially generating US$54 million in EBITDA in 2020 before maximising capacity of 34 million gal./yr, generating US$112 million in 2023.
“We are thrilled to have been awarded approval to purchase this plant and take this significant step forward toward commercialised production at scale. By purchasing and renovating an already built facility, we’ll reduce our capital expenditure significantly allowing us to market years ahead of building from scratch,” said Daniel de Liege, Chairman, Alliance Bio-Products, Inc. “We have received tremendous support through our 506(c) equity offering, and expect the opportunity to close quickly now that the purchase has been approved. In combination with some of our other production partnerships in place, we believe we are in a strong position to begin generating significant revenues and bringing increased value to our shareholders.”
The plant purchase will create approximately 100 permanent jobs in the short term, with additional employment opportunities created as production expands. The community will also benefit from an infusion of tax base revenue, as well as support revenue through an increase of usage of trucking, housing, restaurants, suppliers and more. The plant would also help to dispose of green waste that would otherwise fill up the landfill and release millions of tons of carbon dioxide.
Read the article online at: https://www.hydrocarbonengineering.com/clean-fuels/14072017/cellulosic-ethanol-production-plant-purchase-approved/