Velocys-backed fuel plan gets $70m US grant for new plant
ENERGY innovator Red Rock Biofuels has been awarded a $70m (£43m) grant to construct a biomass-to-liquids (BTL) plant in Oregon incorporating Velocys Fischer-Tropsch technology.
“We are very pleased to see the Red Rock project moving ahead,” said Roy Lipski, the chief executive of Velocys – a technology innovator for smaller scale gas-to-liquids.
“This $70m government grant is set to make the Oregon project happen and will act as a catalyst for early adoption of BTL in North America.”
BTL plants convert unconventional, remote and problem gas, as well as waste biomass into valuable liquid fuels.
Red Rock Biofuels – a customer of Velocys – has extensive experience constructing and operating commercial-scale biofuels facilities.
The new plant in Oregon will convert some 170,000 tons per year of forestry and sawmill waste into approximately 1,100 barrels per day of ultra-clean transportation fuels.
Successful execution of the project is expected to result in revenues to Velocys in excess of $15m during construction, and an additional $30m or more over the life of the facility.
Red Rock is targeting final investment decision on the project within six months, with construction lasting about 18 to 24 months.