Fiberight strikes deal for biogas plant in Iowa
Fiberight, a Maryland-based renewable energy company, has received approval to build a $30 million (€22.5 million) waste-to-energy facility in Marion City, Iowa after signing a deal with the city's council.
Construction on the Marion Waste Revitalisation Facility, which will generate biogas from solid waste, could begin by the end of this year. The biogas will be used to power the city's fleet of over 50 vehicles. In addition, some of the organic material will also be transported to an idle ethanol plant in Blairstown. Fiberight acquired the shuttered factory and is currently retrofitting it to convert waste into ethanol.
When the plant comes online it will be able to handle 100 tonnes of waste materials a day before this is ramped up to 400 tonnes a day in the future.
The new plant is being funded through a $25 million loan guarantee from the US Department of Agriculture, $20 million in private investment and a $2.9 million grant from the Iowa Power Fund.
Fiberight is now seeking an air quality permit from the Iowa Department of Natural Resources. No other permits are required.
Under the agreement, the biogas generation facility must be up and running by January 2015 otherwise Marion can terminate the contract.