Alliance Bio-Products to demonstrate its CTS technology revamping closed ethanol plant
Alliance
Bio-Products, Inc., a wholly-owned subsidiary of Alliance BioEnergy Plus, Inc., have
received approval from the United States Department of Agriculture (USDA)
Office of Rural Development for the purchase of a closed ethanol plant in
Indian River County (Florida). The approved purchase includes the fully
functional plant, more than 143 acres (58 ha) that the plant resides on and all
related equipment and vehicles (see press
release).
The former facility (INEOS New Planet BioEnergy
plant) had been constructed for demonstrating at full commercial scale the economic
conversion of a variety of different lignocellulosic waste biomass feedstocks
to bioethanol and renewable electricity utilizing the INEOS Bio technology (gasification
+ fermentation). In addition to having the capacity to produce 8 million gallon
(30 million litres) per year of ethanol, the plant also could generate up to 6
MW of electricity. The construction was completed in June 2012 and the first
production of cellulosic ethanol at commercial scale took place one year later.
In December 2014, the plant was shut down for the installation of a HCN
scrubber. The presence of low levels of hydrogen cyanide, toxic to the organisms
involved in the fermentation, was a major problem for the process. In 2016, the
NREL reported (2015
Survey of Non-Starch Ethanol and Renewable Hydrocarbon Biofuel Producers) that
the plant was idled in 2015 while working on mechanical improvements and was
expected to resume operations sometime this year. Finally, in September 2016, INEOS Bio announced its intention to sell its ethanol business, including the New Planet
BioEnergy plant.
Figure 1. Ineos New Planet BioEnergy plant (extracted
from “2015
DOE IBR Platform Peer Review: INEOS New Planet BioEnergy Indian River BioEnergy
Center”)
Alliance Bio-Products made an offer to purchase
the facility with the purpose of converting the current process into its “Cellulose
to Sugar” (CTS) technology under an agreement with Alliance BioEnergy. By
renovating the plant and utilizing a state-of-the-art fermentation and
distillation system already in place, it believes it can scale-up the
production capacity and profitability of its sustainable alternative to
petroleum-based fuels and other products. The project will create approximately
100 permanent jobs in the short term. The purchase of the plant is being funded
through a mixture of debt and equity. The equity portion is still open for
investor consideration in order to reduce as much debt as possible (offering page).
The plans of the company are based on a
3-stages strategy:
Stage
|
Production capacity
(million gallon per year)
|
EBIDTA
(million $)
|
Date
|
1
|
8
|
25
|
Summer 2018
|
2
|
16
|
54
|
2020
|
3
|
34
|
112
|
2023
|
According to press release, the patented CTS
process (family of patents centered around the main US 8062428 B2) allows to
produce biofuels for less than $1 per gallon. It is based on the solid acid
catalyzed hydrolysis of cellulose-containing materials. The catalyst (for
instance, kaolin or bentonite) in the shape of dry powder is combined with the
cellulosic material and agitated to obtain a high yield of soluble sugars into
the CTS Reactor. In the process, the agitation of the material provides the
kinetic energy necessary to drive the hydrolysis reaction. In just minutes and
with no enzymes, liquid acids, applied heat or pressure, the cellulose and
hemicellulose is broken down and converted to its C5 and C6 sugars, leaving pure
lignin as a byproduct. The only pretreatment that may be necessary is size
reduction.
Figure 2. CTS process (extracted from Alliance
BioEnergy Plus web page)