Red Rock Biofuels commences construction of its biorefinery in Oregon
Type of post: NEWS.
After many years of development, Red Rock Biofuels LLC (RRB) has announced the initiation of the building of its biorefinery
in Oregon (see “Red Rock gets go-ahead for Lakeview”, Herald and News, 15/4/2018). The
ground breaking ceremony is planned by later this summer. RRB is a subsidiary
of IR1 Group LLC and was created with a dual objective: (1)
valorize the forest debris that fuels the widespread and devastating wildfires
in the Western United States; (2) respond to the rising demand for drop-in,
cost competitive renewable jet and diesel fuels. By using forest and sawmill
residues, RRB’s biorefinery will not only avoid competition for agricultural
resources, but also reduce the risk of catastrophic wildfires. It will also
help to regenerate the local forestry industry.
Project key data
Location
|
Lakeview
(Oregon, USA).
The site is
fully permitted and it is situated next to: an interstate natural gas
pipeline, the State Highway 395 and a line rail.
|
Feedstock
and processing capacity
|
136,000
tons of waste woody biomass gathered from thinning projects.
|
Products
and production capacity
|
15.1
million gallons of renewable fuels (including diesel and jet fuel).
They are ASTM-approved
fuels currently in use globally.
|
Process
technologies
|
-
Gasification.
-
Fischer-Tropsch.
- Hydroprocessing.
|
Funding sources
|
A
combination of bonds and equity.
|
Fuel offtake
agreements
|
RRB has in place contracts from companies to
purchase 100% of the jet fuel produced each year (for instance, with Southwest
Airlines and FedEx).
|
Timeline
|
Initial
estimates had the facility opening by 2016, but negotiations and the
permitting process hit several snags.
Construction
is estimated to take 18 months, with operations planned to start in 2020.
|
Figure 1. Process technologies of the RRB
biorefinery (extracted from RRB website)
Involvement of Velocys
in the project
Velocys plc has received a “notice to proceed”
action to commence manufacturing of the Fischer-Tropsch reactors and catalyst
for the RRB biorefinery (see press release, 4/5/2018). Its role in the project will be as
a technology licensor and it is expected to deliver around 15 M$ of revenues
during the construction and early operation stages of the plant, and an additional
30 M$ over the life of the biorefinery. Over 6 M$ has already been invoiced and
received from RRB.
The licensing of its technology to RRB is
complementary to its strategy to develop its own biorefineries, the first of
which will be located in Natchez, Mississippi (see “Velocys
plans for the construction of a commercial BTL plant move forward”,
29/6/2017).