New Generation Biofuels to pursue Florida projects

By Erin Voegele | January 15, 2009
Web exclusive posted Jan. 28, 2009, at 11:14 a.m. CST

New Generation Biofuels Holdings Inc. recently announced it has signed a memorandum of understanding (MOU) with First Florida Biofuels LLC to pursue the development of potential biofuel projects in Florida.

Under the MOU, New Generation Biofuels will provide technology and information; First Florida Biofuels will provide its marketing expertise and arrange financing for the projects. "Our arrangement with [First Florida Biofuels] is one that contemplates a Florida-based biofuel facility that would be based on our second-generation technology," said David Gillespie, New Generation Biofuels' president and chief executive officer.

New Generation Biofuels' technology produces a biofuels that is different from traditional biofuels, such as biodiesel. The company's biofuel is produced using a simple proprietary blending process that combines water, proprietary additives and oil feedstocks. "Biodiesel is made through the commonly understood transesterification process, where vegetable oil is chemically modified yielding the biodiesel…and a glycerin waste stream," Gillespie said. "Rather than using a chemical reaction process, we use a blend process and we make an emulsion."

The company's technology can use a wide variety of feedstocks, such as traditional vegetable oils, recycled vegetable oils and jatropha or algae oil. According to Gillespie, New Generation Biofuels believes that this process is simpler, cleaner, less expensive and less energy intensive than traditional production methods.

Gillespie said the fuel could be used in any environment where distillate fuels are currently used, including the diesel, jet fuel and heating oil markets. "We are marketing our product most directly to large stationary sources," he said. "Unlike the biodiesel guys who are going primarily after fleets and motor vehicles, we are marketing towards things like power plants, large industrial space heating customers such as college campuses or hospitals, and marine applications – things like tug systems, fairy boats and cruise ships. That's not to say that our product can't be used in motor vehicles, it's just not our immediate area of focus."

New Generation Biofuels is currently in the final stages of completing construction on the company's first commercial-scale facility. The Baltimore, Md.-based plant, which is expected to begin producing fuel in the next few weeks, has a production capacity of 5 MMgy of biofuel. The modular plant can be expanded up to 50 MMgy as demand for the biofuel product grows, Gillespie said.
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