Feb. 4, 2011, Pasadena, TX – KiOR Inc. has
received a term sheet for a loan guarantee supporting a more than $1 billion
biofuel project from the U.S. Department of Energy’s (DOE) Loan Guarantee
Program. The project would convert wood biomass into drop in biofuels such as
gasoline and diesel fuel.
The project will consist of four
biorefineries that will contribute approximately 250 million gallons of
cellulosic biofuel to the Renewable Fuel Standard. The first two plants are
expected to be in Mississippi, with additional sites planned in Georgia and
Texas.
“We are pleased to work with the DOE on
reaching this milestone and are excited about the scale and impact of the
project. The project’s first facility, planned in Newton, Mississippi, is
expected to be the largest cellulosic biofuels facility in the United States.
While the term sheet is an important step in the process, we recognize that
more work lies ahead to finalize the loan guarantee, and there is no assurance
it will be issued until the loan is closed,” says Fred Cannon, president and
CEO of KiOR.
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KiOR's demo facility near Houston, Texas.
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Last year, Mississippi attracted the first
two commercial-scale plants to the state by providing an assistance package
that included a $75 million loan (see Mississippi supports wood-to-crude oil
plants). In August 2010, KiOR announced the start of engineering and
construction on its first commercial facility in Columbus, Mississippi, which
is expected to produce over 11 million gallons/year of fuel. KiOR has
additional projects in various stages of development in Arkansas, Alabama, and
other southern states.
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