CNGV’s investment enables Sundrop Fuels to expand operations and begin construction of a commercial demonstration facility to produce biobased green gasoline made from cellulosic material.
Additionally, Oak Investment Partners, a current investor, has committed to invest $20m pro rata with CNGV.
Sundrop Fuels uses an ultrahigh-temperature heat transfer process to gasify virtually any cellulosic feedstock into synthesis gas, which is then converted into clean, affordable biobased green gasoline and other drop-in transportation biofuels for use in automobiles, diesel engines and aircraft via the nation’s existing fuels distribution infrastructure.
In addition, Sundrop Fuels intend to maximize its synthesis gas production by integrating clean, abundant natural gas with biomass feedstock, facilitating the most efficient utilization of hydrogen from both the biomass and natural gas to produce higher yields than any other biomass process.
Sundrop Fuels plans to break ground in next year on its biorefinery and expects to launch production at its 200-million gallon per year biorefinery in 2016.
The biorefinery will produce about 40 million gallons of transportation fuel annually demonstrating its RP Reactor technology with ExxonMobil’s Methanol-to-Gasoline process.
Chesapeake’s equity position in Sundrop Fuels will be held by Chesapeake NG Ventures Fund, a subsidiary of CNGV.
