Biofuelds America, Inc. (Biofuelds America) is seeking around $20 million in equity investment to develop a ligno-cellulosic bio-refinery, Project Tennessee in Marion county. The proposed project will be developed on a 35-acre closed ethanol facility and will utilize wood waste and municipal solid waste as feed stocks to produce ethanol, high value bio-chemicals such as lignin and furfural as well as electricity. The proposed $62.3 million plant is expected to be operational in 2010.
The new plant will initially produce 30 MMGY of ethanol with projections to produce 100 MMGY at full capacity by the end of its fourth year of operation.
The plant will process self-generating electricity for its own use. The excess energy estimated at 15 megawatt will be sold to local utilities as electricity.
BFA has feedstock supply agreements in place and has an off take agreement from CHS to purchase and market its ethanol, it was stated.
The proposed Project Tennessee will draw part of its funding from public debt issued by the Industrial Development Board of Marion county in the amount of $20 million.
Pete Reeves, chief executive officer of the company, said that Project Tennessee will utilize bank debt to finance a substantial portion of its development cost.
Based on projections, total bank participation required is $19.7 million.
The company is currently in negotiations with SunTrust Bank to provide the debt facility. The debt facility will be partially guaranteed under the U.S. Department of Labor Section 9003 Bio-refinery Assistance Program. This federal program will provide a guaranty to the lending institution of up to 80% of the borrower’s indebtedness for development and construction of a commercial scale bio-refinery or for retrofitting an existing facility that uses eligible technology to develop bio-fuels.
Reeves said, “Our goal is to maintain a public/private funding structure and to partner with one or more equity providers that share our vision of producing alternative fuels and bio-chemicals to expand our business platform and to increase shareholder value. This investment opportunity is not limited just to Project Tennessee. BFA has plans to develop a number of other bio-refineries throughout the United States.
Project plans are already underway for a plant in East St. Louis, Ill., and another in Mississippi. Future projects will be started once the initial three are brought on stream or are nearing completion.”