Advance biofuels company, Sundrop Fuels plans to construct its first production facility in the state of Louisiana. Towards this end, the company has bought 1,200 acres of land in Alexandria, Louisiana. The new production facility will have an annual capacity of 50 million gallons and will process gas from a combination of forest waste and clean burning natural gas.
The plant will also serve as a platform to integrate its RP Reactor radiant particle heat transfer gasification technology, which will be used in the company’s future biofuel plants. This will result in annual production of 200 million gallons of drop-in biofuels. By the year 2020, Sundrop Fuels plans to bring its total annual production capacity to one billion gallons.
Construction of the biofuel plant is expected to cost $450-$500 million and it will employ around 150 people. The construction process will be financed partly by selling Private Activity Bonds that are exempted from tax and which do not incur any financial obligation from local and state entities. Major investors in the company include natural gas company Chesapeake Energy Corporation which has invested $155 million. Other investors are Oak Investment Partners and Kleiner Perkins Caulfield & Byers.
According to the Governor of Louisiana, Bobby Jindal, the plant provides great opportunities to the local community and provides new solutions to the energy crisis in the US. According to the CEO of Sundrop Fuels, Dr. Wayne Simmons, the company’s decision to choose the Louisiana site was driven by the state’s dedication to the biofuel industry.