AE Biofuels brings life to ethanol plant
A Californian ethanol plant could soon start grinding again.
The former $130 million (€92.2 million) Cilion ethanol plant in Keyes is expected to be in operation again by the end of March after AE Biofuels took up the lease.
Leasing the 55 mgy plant will cost $250,000 a month and AE Biofuels plans to install its cellulosic ethanol technology so wheat straw, corn stalks and agricultural waste can be used to make the fuel.
Under the terms of the project agreement, AE Biofuels is spending about $1.6 million to repair and restart the plant. In addition, the original contractor of the Keyes plant will contribute $1 million to the plant repair and restart project.
Once the plant is operational, AE Biofuels will pay Cilion rental payments of $3 million a year for three years.
California introduced an E10 blend, expanding the state’s ethanol market to approximately 1.5 billion gallons.
AE Biofuels already owns a cellulosic ethanol commercial demonstration facility in Montana.
Grain milling company Western Milling and venture capital firm Khosla Ventures formed Cilion with the plan to build at least eight plants.
The former $130 million (€92.2 million) Cilion ethanol plant in Keyes is expected to be in operation again by the end of March after AE Biofuels took up the lease.
Leasing the 55 mgy plant will cost $250,000 a month and AE Biofuels plans to install its cellulosic ethanol technology so wheat straw, corn stalks and agricultural waste can be used to make the fuel.
Under the terms of the project agreement, AE Biofuels is spending about $1.6 million to repair and restart the plant. In addition, the original contractor of the Keyes plant will contribute $1 million to the plant repair and restart project.
Once the plant is operational, AE Biofuels will pay Cilion rental payments of $3 million a year for three years.
California introduced an E10 blend, expanding the state’s ethanol market to approximately 1.5 billion gallons.
AE Biofuels already owns a cellulosic ethanol commercial demonstration facility in Montana.
Grain milling company Western Milling and venture capital firm Khosla Ventures formed Cilion with the plan to build at least eight plants.
Loading ...
