Biofuels Company To Locate Production Facility In Louisiana

Sundrop Fuels Inc. has announced that it intends to construct the company's first production facility near Alexandria, La. The plant will use forest waste combined with hydrogen derived from natural gas to produce up to 50 million gallons of ‘green gasoline’ annually, the company notes.

Sundrop Fuels says the facility will cost approximately $450 million to $500 million to build and will be financed in part through the sale of tax-exempt private activity bonds. The State of Louisiana is also providing the company with performance-based incentives for the facility, which is expected to employ about 150 people.

The facility will enable Sundrop Fuels to begin field integration of its proprietary RP Reactor radiant-particle heat-transfer gasification technology. The company says this process will ‘drive Sundrop Fuels' future massive-scale biofuels plants, which will produce more than 200 million gallons of renewable, drop-in biofuels annually.

Chesapeake Energy Corp., a producer of natural gas, invested $155 million in Sundrop Fuels last summer.

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