BBI partners with Fagen to produce cellulosic ethanol

May 9, 2008

BY Kris Bevill

Web exclusive posted May 16, 2008 at 1:30 p.m. CST

BBI International has created a subsidiary company to develop and operate cellulosic ethanol facilities in the United States.

The new company, BBI BioVentures LLC, will begin constructing its first plant later this year and expects it to be operational by the second half of 2009. The company will employ a multi-plant strategy to build and operate "niche" feedstock cellulosic ethanol plants in the near term rather than embark upon a long R&D road to commercializing cellulosic technology. Mark Yancey, vice president of project development for BBI International, said BBI has identified the major challenges to producing cellulosic ethanol and has developed a strategy to mitigate those issues. Cellulosic ethanol plants developed by BBI BioVentures will use readily available, pre-collected feedstocks that require little or no pretreatment. Capital costs will be kept to a minimum by building small facilities that are colocated with existing facilities when possible.

BBI BioVentures' first round of cellulosic ethanol plants will have capacities of 4 MMgy to 5 MMgy with later plants having production levels up to 20 MMgy.

BBI International and Fagen Inc. have reached an agreement that provides for Fagen to be BBI's preferred engineering, procurement and construction contractor for BBI BioVentures' cellulosic ethanol projects.

"We are thrilled to be working with one of the premier ethanol engineering design and construction contractors in the world" said Mark Yancey, vice president of project development for BBI International. "Fagen's ethanol plants operate flawlessly and their experience is crucial to the success of BBI BioVentures."

"Fagen Inc. and BBI International have had a very positive relationship working together in the ethanol industry over the past two decades" said Ron Fagen, CEO of Fagen. "We look forward to the continuation of this relationship by providing construction and related services to BBI BioVentures."

BBI International has offices in the United States, Canada and Australia and specializes in the engineering and project development of biofuels facilities, biofuels conferences and events, and biofuels media. In the United States, the company publishes Ethanol Producer Magazine, Biodiesel Magazine and Biomass Magazine.

Fagen is a heavy industrial design-build contractor providing construction services and detail engineering through Fagen Engineering LLC, specializing in energy related projects. The company is 100 percent family owned and is the largest green energy design-build company in the United States.

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