The Lipid-to-Hydrocarbon (LTH) technology of FORGE produces renewable jet fuel, diesel as well as naphtha from waste fats and oil
Canadian biofuel start-up, FORGE Hydrocarbons has secured equity investment from Shell Ventures and a follow-on contribution from Valent Low-Carbon Technologies.
FORGE will utilise the funding for the construction of CAD$30m ($22.6m) biofuel production facility in Sombra, Ontario.
The Lipid-to-Hydrocarbon (LTH) technology of FORGE produces renewable jet fuel, diesel as well as naphtha from waste fats and oil.
According to the company, the renewable diesel and jet fuel have more than 90% less carbon intensity compared to fossil-based diesel.
The biofuel company is firstly targeting the more than four-billion-gallon mandated market in North America for renewable diesel as well as the jet-fuels market. It is planning to use abundant, low-cost and frequently unused lipid feedstocks.
Shell advanced biofuels general manager Andrew Murfin said: “Biofuels are critical in the move to lower-carbon marine, aviation and heavy-duty transport. Collaboration will be key to a successful energy transition and Shell’s investment in FORGE to progress this commercial-scale project can help accelerate this technology.”
The new facility is estimated to have 7.5 million gallons of renewable fuels per year
FORGE was founded by biofuels entrepreneur Tim Haig, who has also founded BIO, which is now part of World Energy.
The capacity of the biofuel production facility in Sombra is estimated to have 7.5 million gallons of renewable fuels per year.
Valent Low-Carbon Technologies executive vice president Karlis Vasarais said: “FORGE has unlocked nature’s ways in a cost-competitive, feedstock abundant and capital-light business model.
“This is a cornerstone technology of the low-carbon fuels value chain that the global transportation sector in air, sea and land, has been searching for.”
The project is expected to create around 150 construction and engineering jobs during the construction phase and over 45 full-time jobs during commercial operations of the facility.
Shell Ventures will join the other funders and collaborators of FORGE that include World Energy, Lockheed Martin, Valent Low-Carbon Technologies and Sustainable Development Technology Canada.