BlueFire Renewables Secures 15-Year Off-Take Agreement with Tenaska BioFuels for Mississippi Cellulosic Ethanol Facility
IRVINE, Calif. and OMAHA, Neb., Sept. 20 — BlueFire Renewables, Inc. (OTC Bulletin Board:BFRE.ob – News), a company focused on changing the world’s transportation fuel paradigm through the production of renewable fuels from non-food cellulosic wastes, has announced an off-take agreement with Tenaska BioFuels, LLC (TBF) for the purchase and sale of all ethanol produced at BlueFire’s planned cellulosic ethanol facility in Fulton, Miss.
“This off-take agreement is a significant step forward for BlueFire. It provides immediate revenue once our plant is on-line. Also, it will move BlueFire closer to a debt financing agreement with the Department of Energy and U.S. Department of Agriculture,” stated Arnold Klann, CEO of BlueFire Renewables, Inc. “This is one of the first cellulosic ethanol contracts of its kind in the United States establishing BlueFire as a clear leader in the industry.”
Pricing of the 15-year contract follows a market-based formula structured to capture the premium allowed for cellulosic ethanol compared to corn-based ethanol giving BlueFire a credit worthy contract to support financing of the project. Despite the long-term nature of the contract, BlueFire is not precluded from the upside in the coming years as fuel prices rise.
TBF, a marketing affiliate of Tenaska, provides procurement and marketing, supply chain management, physical delivery, and financial services to customers in the agriculture and energy markets, including the ethanol and biodiesel industries. In business since 1987, Tenaska is one of the largest independent power producers.
“We look forward to a long-term relationship with BlueFire and to collaborating on off-take agreements for future plants as BlueFire continues to expand and bring valuable biofuels to the markets that need it most,” stated Dave Neubauer, TBF general manager and vice president.
The Fulton, Miss. project will allow BlueFire to use green and wood wastes available in the region as feedstock for the ethanol plant, which is designed to produce approximately 19-million gallons of ethanol per year. Another fully permitted and shovel-ready facility in Lancaster, Calif. will use post-sorted cellulosic wastes diverted from Southern California’s landfills to produce approximately 3.9 million gallons of fuel-grade ethanol per year.
About BlueFire Ethanol, Inc.:
BlueFire Ethanol, Inc. is established to deploy the commercially ready, patented, and proven Concentrated Acid Hydrolysis Technology Process for the profitable conversion of cellulosic (“Green Waste”) waste materials to ethanol, a viable alternative to gasoline. BlueFire’s use of the Concentrated Acid Hydrolysis Process Technology positions it as the only cellulose-to-ethanol company worldwide with demonstrated production of ethanol from urban trash (post-sorted MSW), rice and wheat straws, wood waste and other agricultural residues. BlueFire Ethanol, Incorporated’s goal is to develop and operate high-value carbohydrate-based transportation fuel production facilities worldwide. These “biorefineries” will convert widely available, inexpensive, organic materials such as agricultural residues, high-content biomass crops, wood residues, and cellulose from MSW into ethanol. BlueFire intends to build a multinational company that leads the world in producing biobased transportation fuels. Its business will encompass development activities leading to the construction and long-term operation of production facilities while maintaining technological advantage and ownership of the process technology and all its improvements. Ethanol will be produced from biorefinery facilities opportunistically constructed on or near landfills, waste collection and waste separation sites. Each facility will deploy the proprietary technology, which uses all cellulosic waste materials traditionally disposed of in landfills as feedstock. www.BlueFireEthanol.com
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FORWARD-LOOKING STATEMENTS
Statements about BlueFire Ethanol, Inc.’s expectations, including future revenues and earnings, and all other statements in this press release other than historical facts are “forward-looking statements” within the meaning of section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and as the term is defined in the Private Litigation Reform Act of 1995. BlueFire’s actual results could differ materially from expected results. BlueFire undertakes no obligation to update forward-looking statements to reflect subsequently occurring events or circumstances. Should events occur which materially affect any comments made within this press release; BlueFire will appropriately inform the public.