CERT and BioJet join forces for biofuels development

The Council of Energy Resource Tribes (CERT), a group made up of 57 Indian tribes, has formed a business relationship with renewable jet fuel supplier BioJet International.

The CERT members, who own and manage coal, uranium, oil and gas reserves throughout the US, will work with BioJet to capitalise on supply chain projects relating to feedstock and refining projects.

Mitch Hawkins, CEO of BioJet, says: ‘CERT is working through Tartoosh and BioJet to create project opportunities, raise capital and commercialise innovative biofuels technologies with an eye towards the creation of sustainable economic development within Indian country.’

BioJet last year received $1.2 billion (€940 million) in funding to invest and make strategic acquisitions. CERT manages 56 millions of acres of agricultural land of which BioJet will use about one million acres to grow feedstock, using these funds to do so.

David Lester, CERT executive director, says: ‘This effort will be led for CERT by Robert Martin, former National Ombudsman of the US Environmental Protection Agency in Washington DC, as leader of the RES Alliance with which BioJet is a strategic partner. We are poised for a long transition period wherein biofuels gain large market share not only from fossil fuels but also from ethanol.’

Hawkins adds: ‘We envision the scope of our business relationship broadly with CERT to include at least $1 billion worth of joint projects over a ten year period locating feedstock generation and refining operations to provide biofuels for commercial airlines and ground transportation at key locations throughout the western US.’

CERT and BioJet are expected to finalise a Memorandum of Agreement within the next two months which will define the terms of their participation.

‘BioJet and CERT will work together to develop feedstock resources both on tribal lands and also natural gas resources owned by the tribes.  The parties will also work together on development of biofuel refining facilities on tribal lands.  They will also coordinate on bioenergy related technology development and, in fact, are already doing so on at least one project,’ says Hawkins.

He goes on to explain that the most important aspect of any bioenergy project is the capital required to support it: ‘In this regard, the finance aspects of the relationship are unique in the US.’

He says CERT tribal lands are supported by financial incentives which mean they are exempt in varying degrees from state and local taxation as well as permitting and licensing requirements.
This serves to reduce transactional costs for any funded project and Indian tribes may issue general revenue bonds under the Tribal Tax Status Act and Tribal Economic Development Bonds under the American Recovery and Reinvestment Act, as well as being eligible for federal debt financing.