In Colorado, Sundrop Fuels announced that they have agreed to purchase about 1,200 acres of land near Alexandria, Louisiana to build their first plant. Using forest waste and hydrogen from natural gas, their plant will produce up to 50 MGy of renewable gasoline. The plant will cost $450 to $500 million to build and will be financed in part through the sale of tax-exempt Private Activity Bonds.
The biofuels plant will salvage wood waste from renewable forests in Central Louisiana and adjacent regions and use that biomass as a feedstock. Sundrop Fuels also will extract hydrogen from abundant supplies of Louisiana natural gas, combining the hydrogen in a proprietary reactor with carbon extracted from wood waste. The result — up to 50 million gallons of fuel a year — will represent the world’s first renewable green gasoline that’s immediately adaptable to existing pumps, pipelines, engines and transportation infrastructure.
By 2020, Sundrop Fuels expects to produce more than 1 billion gallons of renewable fuel annually through its process (including but not limited to its Louisiana facility), meeting nearly 10 percent of the federal government’s stated goal for renewable fuels refined from cellulosic material and other alternatives to crude oil.