Cool Planet Energy Systems, a US-based biofuel developer backed by the corporate venturing units of General Electric, Google Ventures, BP, ConocoPhilips, NRG and the Constellation Energy division of Exelon, is investing $168m to build its first three commercial biomass-to-gasoline refineries within the US state of Louisiana, in Alexandria, Natchitoches and a site to be determined.
The news follows Cool Planet’s recent announcement in June 2013 that it had raised $29.9m of an anticipated $100m series D financing, intended to support the commercialization of the company’s first fuel production facility.
Louisiana Governor Bobby Jindal. ““For decades, Louisiana’s oil and gas leaders have teamed up with our remarkable work force to pave the way in energy production for our nation and the world. We are now setting the pace for innovative new technologies that harness Louisiana’s renewable energy resources and supply advanced fuels to meet our nation’s energy demands.”
Cool Planet will harvest wood waste and forest byproducts to make gasoline at its initial commercial-scale facilities in Louisiana. Each bio-refinery will be capable of producing 10 million gallons of gasoline, which will be compatible for use in existing vehicles on the road today.
Howard Janzen, Cool Planet Energy Systems chief executive officer, said: “Cool Planet chose Louisiana for multiple reasons, including abundant renewable feedstock supply and a business-friendly attitude toward innovative companies like ours. The support we have seen here enhances our unique distributed production model, which envisions locating small bio-refineries near biomass sources to keep both operating and capital costs low. Our goal is to have operating and capital costs that are competitive with conventional oil industry gasoline production costs.”
To secure the project, Louisiana offered Cool Planet an incentive package that included a $750,000 Economic Development Award Program grant to offset infrastructure costs.
Cool Planet plans to develop a total of 400 micro-refineries across the US in the next decade.