BlueFire Renewables Signs Financing MOU for its Fulton, Mississippi Biorefinery and Other Projects in the U.S. and China
BlueFire Renewables, Inc. (OTC BB: BFRE.OB), a company focused on changing the world’s transportation fuel paradigm through the production of renewable fuels from non-food cellulosic wastes, has entered into a Memorandum of Understanding (“MOU”) with China Huadian Engineering Co LTD to finance its integrated Power Plant and Biorefinery in Fulton, MS and up to 5 additional plants in the United States.
Under the MOU, Huadian will invest equity by purchasing an interest in the BlueFire Fulton Renewable Energy LLC and, optionally, debt for the Fulton project to complete financing and construction for this cellulosic ethanol facility. Additionally, upon the initial success of the Fulton Project, the agreement intends for Huadian to invest equity and/or provide debt for the development of five (5) additional plants in the United States. The MOU also contemplates the formation of a Development Joint Venture to develop similar projects in China.
“This agreement provides the foundation to finance the Fulton facility and a significant number of additional plants in the US and in China and will enable BlueFire Renewables to create much needed jobs — starting with about 700 jobs for the construction of the Fulton plant ” said Arnold Klann President & CEO.
China Huadian Engineering Co LTD is one of China’s largest utilities, generating more than 75,000 MW of power in China. Its parent company China Huadian Corporation has over $51 billion in total assets.
“Having such a strong partner, both technically and financially backing up BlueFire, is a significant advancement in bringing BlueFire’s business plan to fruition,” added Klann.
Huadian Engineering Co. Ltd.’s collaboration with BlueFire Renewables, Inc. is, in part, a result of the introduction and low carbon development program launched jointly in late 2009 between the National Center for Sustainable Development in Washington, DC and the CDM Fund (supervised by the Ministry of Finance) in Beijing, China.
“The goal of the joint program is to identify important emerging practical technologies with significant potential for broad deployment in China, bring these technologies to commercial scale in the US and apply lessons learned in meeting the energy and low carbon development needs of China, the United States and globally,” said Mitchell Stanley, President of NCSD. “Cellulosic ethanol manufactured from biomass and not from food crops is mandatory for China, and BlueFire offers a scalable efficient approach to producing numerous valuable industrial chemicals from domestic sources rather than from imported petroleum.”
Once the Memorandum of Understanding terms are finalized in a Definitive Agreement, BlueFire will move toward financial closing allowing the company to accelerate and complete construction of its first commercial cellulosic ethanol facility in Fulton Mississippi. First phase of construction began in December of 2010, and was completed in June, 2011 with the remaining construction dependent on final financing for the complete project. The Fulton project utilizes green and wood wastes available in the region as feedstock for the production of approximately 19 million gallons per year of cellulosic ethanol sold under long-term contract to help fulfill the demand under the Federal Renewable Fuel Standard established under the Energy Independence & Security Act.