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January 17, 2009
USDA APPROVES FIRST EVER GUARANTEED LOAN FOR COMMERCIAL -SCALE CELLULOSIC ETHANOL PLANT
Funding for Wood-chip Plant Paves Way for Next Generation of Biofuels
WASHINGTON, Jan. 16, 2009 -Agriculture Secretary Ed Schafer announced today that USDA Rural Development has approved the first ever loan guarantee to a commercial-scale cellulosic ethanol plant. The $80 million loan to Range Fuels Inc., Soperton, Ga., comes from the Section 9003 Biorefinery Assistance Program authorized by the 2008 Farm Bill.
"The investment in this facility -which will make cellulosic ethanol from wood chips -has the potential to significantly advance the timetable for second generation ethanol production in this country," Schafer said. "I visited the pilot plant last October and was excited to see how well the technology works. The funding announced today helps the Bush administration fulfill its commitment to reduce America's dependence on foreign oil by developing alternative, renewable energy sources. USDA is proud to work with the private sector to lead this important breakthrough in renewable energy production."
The Biorefinery Assistance Program promotes the development of new and emerging technologies for the production of advanced biofuels -defined as fuels that are not produced from food sources. The program provides loan guarantees to develop, construct and retrofit viable commercial-scale biorefineries producing advanced biofuels. The maximum loan guarantee is $250 million per project. The program is designed to create energy-related jobs and economic development in rural America. The loan to Range Fuels is approved subject to conditions.
The project is expected to produce an estimated 63 jobs. When fully operational in 2010, the plant is expected to produce approximately 20 million gallons of cellulosic ethanol per year.
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May 1, 2008
Cellulosic ethanol producer Range Fuels has heaped more than $50 million extra onto a $100 million round we reported two months ago, picking up the support of Passport Capital, Morgan Stanley Capital Group and others.
While the company originally planned to keep the round to $100 million, it appears to have received intense interest in its project. While the round was at first over-subscribed to $130 million, according to Ethanol Producer Magazine, Range has now taken a total of $158 million, according to a regulatory filing obtained by VentureBeat. The cap on the round is currently $166 million.
The additional funding should give Range the edge it needs to speed ahead in the race to open the world's first full-scale cellulosic ethanol refinery in Soperton, Georgia, which broke ground last November. At 100 million gallons per year of capacity, the plant will be larger than many existing facilities that make ethanol from corn. Importantly, it has trees from the surrounding forests on-hand for use, rather than counting on next-generation feedstocks like switchgrass that have yet to be planted at scale.
Size is important for Range, because the thermo-chemical process the company uses works better at large scale. Yet even with its size advantage, a number of onlookers have speculated that the company may suffer from the pitfalls of being first to try out a complex process. Just breaking down woody fibers into a product isn't good enough - Range's ethanol must also be cheap enough to compete with fossil fuels, albeit with the help of subsidies.
Its investors either don't have the same expectation, or have been caught up in the drama of (maybe) leading a (possible) revolution.
Range's competition for the distinction of being first is from two companies. One, Coskata, has a partnership with a plant construction company and plans for a 40 million gallon per year plant. The other, Mascoma, took on $50 million more in February and just today announced a partnership with General Motors, which also backs Coskata.
The round was led by Passport, with participation from a passel of others: PCG Clean Energy & Technology Fund, Khosla Ventures, Blue Mountain Venture Capital, Leaf Clean Energy, Pacific Capital Group, Morgan Stanley, and possibly some unlisted investors.
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Broomfield, Colo. -April 1, 2008 -Range Fuels Inc., today announced that it has completed an oversubscribed Series B round of private financing greater than $100 million. Range Fuels will focus the new funds on completing the construction of the first phase of its commercial cellulosic ethanol plant located near the town of Soperton, Georgia. The first phase of construction for the Soperton Plant is targeted to produce approximately 20 million gallons of ethanol and mixed alcohols per year and is scheduled for completion in 2009.
The Series B round was led by Passport Capital of San Francisco, California. Other investors include BlueMountain, Khosla Ventures, Leaf Clean Energy Company (advised by EEA Fund Management Ltd and Shaw Capital), and PCG Clean Energy & Technology Fund (with participation by California Employee Retirement System (CalPERS)). Advanced Equity Incorporated and Morgan Stanley were the Placement Agents for this round of financing.
Range Fuels uses a thermo-chemical process compared to most competing cellulosic processes which use biochemical technology. These enzymatic approaches are typically burdened by $0.50 per gallon enzyme costs, if that target is achieved, and a total cost of production over $2.00 per gallon. Range Fuels' projects their costs to be significantly lower than both the enzymatic process and the current corn ethanol production costs that are near $2.00 per gallon. The Range Fuels' process also uses 75 percent less water than corn ethanol and is classified environmentally as a minor emitter with 60 percent less emissions compared to corn ethanol.
The Range Fuels process also yields significantly more ethanol per ton of biomass than biochemical processes, both reducing the cost of the fuel and the need for biomass and land. This significant cost advantage combined with a multiple year construction head start over competing cellulosic processes positions Range Fuels as the leader in the race to commercialize cellulosic ethanol. The company expects in the long term that gasoline would have to drop below $50 per barrel to be competitive with its ethanol.
Range Fuels began construction of its Soperton, Georgia plant in November 2007 with excavation and site layout. The Soperton Plant is permitted for up to 120 million gallons per year, with its first phase producing approximately 20 million gallons per year of mixed alcohols.
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On November 6, 2007 Range Fuels, Inc. broke ground on the nation's first commercial cellulosic ethanol plant located in Treutlen County, Georgia, near the town of Soperton. Range Fuels, one of six companies selected by the Department of Energy (DOE) for financial support in building a commercial cellulosic ethanol plant, will be the first to break ground.
Range Fuels, Inc. announced November 6, 2007 that it has signed a $76 million Technology Investment Agreement with the U.S. Department of Energy (DOE). Range Fuels' selection for negotiation of this grant was initially announced in February, 2007 and the organizations have agreed on contract terms to allow project funding. Range Fuels was one of six companies selected by the Department of Energy for financial support in building a commercial cellulosic ethanol plant, and will be the first to break ground with a celebratory event November 6, 2007 at the future site of its Soperton, Georgia Plant.
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