BlueFire Renewables, a renewable fuels company, is to integrate a wood pellet production plant with its ethanol facility in Mississippi, US.
The reconfigured design will see a 400,000 tonne per year wood pellet factory integrated with the company's existing 9 million gallon per year ethanol plant in Fulton.
The pellets will be sold under long-term contracts into the European mandated renewable energy market.
Speaking about the new plant, Arnold Klann, president and CEO of BlueFire Renewables, says: 'This restructure provides a more robust economic model for the Fulton facility with an increase in projected revenues. It has become apparent in our attempts to obtain financing for the project that the right synergies and revenue model would be needed to build this first-of-a-kind facility.
'The optimum use of biomass in the integrated facility strikes a much better balance of revenue with costs and a better utilisation of resources. The more profitable use of capital and the enhanced security of projected revenue streams more closely match what the banks have been requiring in the very conservative and restricted credit markets.'