US jury rules against Cello Energy in biofuel lawsuit
Energy company Cello Energy has received a court order to pay $10.4 million (€7.4 million) over allegations the firm fraudulently claimed it could produce cheap fuel from hay, waste wood and other material.
A jury ruled that Cello Energy, owned by a former head of the Alabama Ethics Commission, was liable for breach of contract with New York-based paper company Parsons & Whittemore, which owns a pair of pulp mills in southwest Alabama.
Cello Energy built and staffed a plant, has been found guilty of not up holding the promise to deriving motor fuel from wood chips, crop residue and other biomass.
Parsons & Whittemore had invested $2.5 million in Cello Energy and had another $10 million option for a one-third ownership share.
A jury ruled that Cello Energy, owned by a former head of the Alabama Ethics Commission, was liable for breach of contract with New York-based paper company Parsons & Whittemore, which owns a pair of pulp mills in southwest Alabama.
Cello Energy built and staffed a plant, has been found guilty of not up holding the promise to deriving motor fuel from wood chips, crop residue and other biomass.
Parsons & Whittemore had invested $2.5 million in Cello Energy and had another $10 million option for a one-third ownership share.
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