FRB signs LOI for $250M green diesel plant

Posted January 19, 2010

Flambeau River Biofuels (FRB) has executed a letter of intent to engineer, procure and construct (EPC) the largest second generation "green diesel" plant in the United States at an existing pulp and paper mill in Park Falls, Wis. The $250 million project, funded in part with a grant from the U.S. DOE, is expected to be fully operational by 2013.

Flambeau selected the team of AMEC, the international engineering and project management company, and Miron Construction Co. Inc., a premier Wisconsin-based construction firm, as its EPC contractor.

"The Flambeau River biorefinery will create permanent, high-skilled operating jobs in the region, long-term logging jobs, and short-term engineering and construction jobs, contributing to the economic stimulus of Park Falls, Wisconsin," said Butch Johnson, majority owner of Flambeau River Papers and Flambeau River Biofuels.

"The AMEC-Miron team was selected for its experience and innovation in developing green energy and biofuel facilities," Johnson said. "When completed, Flambeau will have the first integrated pulp and paper mill in North America to run on fossil-free energy."

Tim Gelbar, president of AMEC's Power and Process Americas business, said: "The Flambeau program has been a long-term strategic focus of AMEC's and it will play a key role in our continued development of new bioprocesses and the expansion of clean renewable energy."

"We have been working with Flambeau for two years developing this project" said David G. Voss Jr.,
president, Miron Construction. "The Flambeau BioFuels project is key to developing 'green fuel' renewable energy alternatives and will have a significant positive economic impact in Wisconsin."

The plant will use patented process technology from ThermoChem Recovery International (TRI) to convert 1,000 dry tons per day of woody biomass from bark, sawdust, wood, and forest residue into green electrical power, steam and heat to the adjacent Flambeau River Papers operation, and green diesel fuel and wax to the domestic market.

SOURCE: FLAMBEAU RIVER BIOFUELS