New Generation Biofuels to build Maryland plant

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Web exclusive posted Sept. 22, 2008 at 2:34 p.m. CST

Florida-based New Generation Biofuels Holdings Inc. has signed a site lease and a terminaling services agreement to locate its first 25 MMgy unique biofuel production plant at Atlantic Terminaling in Baltimore, Md. New Generation will also lease 6 million gallons of storage capacity and related terminal facilities for up to 20 years. Atlantic will provide on site logistics services.

When compared to biodiesel, the biofuel has a better energy yield with the process having no loss of energy. Our cost of production is lower and we have a smaller plant footprint," said Phil Wallis, chief marketing officer for New Generation. "The 25 MMgy plant in Baltimore will require less than 10,000 square feet. Also, our emissions profile is better."

Earlier this year, the biofuel was tested in two power generation facilities. Wallis reported the overall emissions profile showed reductions in excess of 40 percent when compared with petroleum-based fuels. "Because of the water, nitrogen oxide is reduced between 40 and 60 percent," Wallis said, adding that sulfur oxides and particulates are both low.

Based on current projections of sales and financing timeline, New Generation expects to complete construction of the facility in the first quarter of 2009, with the potential to double the plant's capacity in the future. In August, the company announced it had signed a design contract with Chicago-based ECE Solutions LLC.

New Generation Biofuels holds the North American, Central American and Caribbean license for a technology developed in Italy that uses an emulsification process rather than a traditional transesterification process. "We are feedstock neutral, we can use virgin oils, waste vegetable oils, animal fats and new feedstocks like jatropha or algae," said Phil Wallis, chief marketing officer for New Generation. The process uses water and additives to hold the biofuel in a stable emulsion.

New Generation Biofuels was formed in 2006 under the name H2Diesel. Wallis explained that when new members were added to the team, they decided a name change was in order. "We are not producing diesel and we're not a biodiesel," he said. In March 2008, the name was officially changed to New Generation Biofuels and this fall the headquarters moved from Houston to the Orlando, Fla., area.

"We're targeting the power generation industry, both commercial and industrial, and are now looking at the marine industry," Wallis said. The Florida location centrally locates the company for its market.