BioNitrogen reports progress with feasibility studies

January 16, 2014

BY Erin Krueger

Florida-based BioNitrogen Holdings Corp. recently announced that the Casale Group has completed engineering feasibility studies for is portion of its plants. The company has also announced it has funded Gainesville, Fla.-based BioResource Management Inc. to conduct feasibility studies for biomass feedstock supply for its plants in Florida and Louisiana.

According to BioNitrogen, biomass feasibility studies are a key requirement leading up to tax-free bond financing to ensure that plan sites will be sustained by local biomass supplies. “The biomass feasibility studies are a necessary prerequisite to securing competitive feedstock agreements in each location and for selling the bonds,” said Ernie Iznaga, vice president of operations at BioNitrogen. “The studies by BioResource Management will confirm the work to date on the availability of biomass in Florida and Louisiana to provide ample biomass feedstock supply for the plants. We are excited about completing these studies and advancing the project. Both the Florida and Louisiana studies are scheduled for completion in February.”

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Regarding Casale’s feasibility reports, BioNitrogen indicated they include a basic engineering package that describe certain elements of the ammonia and urea plants, including design capacities, production outputs, process flow diagrams and equipment lists.  According to BioNitrogen, the CCC Group and AMEC will integrate information from the feasibility reports into the overall plant design.

“Casale’s reports demonstrate tremendous ‘behind-the-scenes’ progress over the last few months that significantly advance the project forward. The next steps for Casale are to begin the initial cost estimates for the ammonia and urea equipment necessary for EPC funding,” Iznaga said.

BioNitrogen first announced its agreement with Switzerland-based Casale Group in August 2013. The agreement contracts the Casale Group to employ its ammonia and urea plant technology for BioNitrogen’s first plant. According to BioNitrogen, Casale has built or refurbished more than 400 ammonia and urea pants worldwide.

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In December, BioNitrogen announced it had received more than $2 million in financing, the majority of which was in the form of a short-term note for up to 6 months. The financing will be used to fund work related to the singing of EPC contracts for the initial plant and for non EPC work, including site, civil and environment work for the initial plant. It will also be used for working capital and general purposes.

BioNitrogen is building its initial plant in Hardee County, Fla. The company employs a gasification technology to convert biomass into urea fertilizer. BioNitrogen received a patent for it process in September 2013. 

 

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