Longmont, Colorado – A new plant near Alexandria, Louisiana will produce the world’s first ready-to-use, renewable “green” gasoline from sustainable forest waste and hydrogen from clean-burning natural gas. Colorado-based Sundrop Fuels has purchased the land to construct its first production facility for the new fuel.
The plant will have the capacity to produce 50 million gallons annually, the company said.
The plant will cost approximately US$450 to $500 million to build and will be partially financed through the sale of tax-exempt Private Activity Bonds, which do not entail any financial obligation from state or local authorities. Lousiana has also provided Sundrop with performance-based incentives for the facility, which is expected to employ about 150 people and have a significant economic impact in the area.
The biofuel is “drop-in,” meaning that it can directly displace petroleum fuels, and is designed to cost as much as, or less than, petroleum-based transportation fuels. The company will use a gasification process to convert cellulosic feedstock into synthetic gas, which will then be made into bio-based “green gasoline” that can be shipped through existing fuel distribution infrastructure.