By Forge Hydrocarbons
By Forge Hydrocarbons
Forge Hydrocarbons Corp., a Canadian biofuel start-up, announces an equity investment from Shell Ventures and a follow-on contribution from Valent Low-Carbon Technologies, which will help build a first-of-its-kind CAD $30 million commercial-scale, biofuel production plant in Sombra, Ont.
Forge’s patented Lipid-to-Hydrocarbon (LTH) technology creates renewable jet fuel, diesel and naphtha from waste fats and oils. Forge’s renewable diesel and jet fuels are greater than 90 per cent less carbon intensive than fossil-based diesel. They are cheaper to produce than conventional renewable diesel and are ‘drop-in’ ready, which means they require no specialized blending infrastructure.
It is widely recognized that the global transport sector accounts for nearly 30 per cent of the world’s energy use and around a quarter of global energy-related carbon dioxide emissions. Different fuels and types of vehicles will be needed to meet the ever-growing demand for transport, while reducing emissions. To continue supplying customers with the fuels they will need in the future, biofuels can play a valuable role in reducing carbon dioxide emissions from the transport sector over the decades ahead.
Forge is initially targeting the over four-billion-gallon mandated market in North America for renewable diesel and jet-fuels market. Forge will tap into abundant, low-cost and often untapped lipid feedstocks.
The technology was invented by David Bressler, Ph.D, at the University of Alberta. It was licensed through TEC Edmonton to Forge which was founded by biofuels entrepreneur Tim Haig, also founder of BIOX Corp, Canada’s first commercial renewable diesel company, now a part of World Energy.
“We know that oil under the earth’s crust was created from lipids without expensive catalysts and hydrogen. Forge mimics nature’s processes, except that we do it in hours not millions of years,” said Tim Haig, founder and CEO, Forge Hydrocarbons.
The capacity of the Sombra production plant is 7.5 million gallons of renewable fuels annually. The project will create approximately 150 construction and engineering jobs during the build phase and more than 45 full-time jobs for the commercial operation of the facility.
Shell Ventures joins Forge’s funders and collaborators including World Energy, Lockheed Martin, Valent Low-Carbon Technologies and Sustainable Development Technology Canada.
The research, development and first pilot facility that enabled Lipid-to-Hydrocarbon technology were made possible by a series of provincial and federal investments from Natural Sciences and Engineering Research Council of Canada, Western Economic Diversification Canada, Alberta Economic Development, Trade and Tourism, Alberta Livestock and Meat Agency, Alberta Innovates, Future Energy Systems: University of Alberta, Natural Resources Canada and Mitacs.