Sep 22 2010
BlueFire Renewables Inc. has partnered with Tenaska Biofuels LLC towards establishing a cellulosic ethanol plant in Fulton, Mississippi. BlueFire Renewables is a company that has its focus towards changing the transportation fuel paradigm of the world by way of producing renewable fuels from the non-food category of cellulosic wastes.
The company has entered into an agreement with Tenaska Biofuels towards the purchase as well as the sale of the overall ethanol that is produced at the proposed facility for cellulosic ethanol in Fulton, Mississippi.
For BlueFire Renewables, the off-take agreement signifies a step forward since it gives immediate revenue upon the plant going on-line while moving BlueFire Renewables that much closer towards an agreement in debt financing along with the U.S. DoE (Department of Energy) as well as the Department of Agriculture.
The pricing for this 15-year contract is based on a formula that is market-based and has its structuring towards capturing the premium that is allowed for the production of cellulosic ethanol in comparison to the corn-based ethanol, thus providing BlueFire Renewables with a contract that is credit worthy and in supporting the financing for this project. The contract’s long term nature does not preclude BlueFire Renewables from future price rise for fuels.