Minnesota cellulosic ethanol partners receive funding
November 3, 2008
BY Anna Austin
Web exclusive posted Nov. 11 2008 at 2:36 p.m. CST
Toronto, Ontario-based SunOpta Bioprocess Inc. recently announced that Central Minnesota Cellulosic Ethanol Partners, a joint venture between SunOpta, Central Minnesota Ethanol Co-op and Bell Independent Power Corp., was notified by the Minnesota Department of Agriculture that it was awarded a NextGen matching grant of approximately $1 million.
The funding will be used to support the second-phase of the project which includes a feasibility study and detailed engineering for a commercial-scale 10 MMgy cellulosic ethanol plant. Each party owns one-third of the project.
A total of eight renewable energy and advanced biofuels-related projects received awards that were announced by Minnesota Gov. Tim Pawlenty at the University of Minnesota-St. Paul campus on Nov. 6. In 2007 Gov. Pawlenty established the Next Generation Energy Act, which provided for a board to focus on the development of next generation energy and biofuel policies, as well as make recommendations to the governor and legislature about possible state investments to help achieve energy independence.
In November 2007 SunOpta and Central Minnesota Ethanol Partners signed a letter of intent to complete a feasibility analysis and engineering study which would result in the parties jointly constructing, owning, and operating a 10 MMgy cellulosic ethanol plant to be collocated with the Central Minnesota Ethanol Co-op's existing 21.5 MMgy ethanol plant in Little Falls, Minn.
Burke said the first feasibility study took approximately six months; he expects the second to take about the same amount of time. "The first was completed to ensure there were no show stoppers," Burke said. "Fiber supply, fiber cost and availability, permitting issues, capital costs, variable costs—and there weren't any."
The proposed plant will use locally obtained wood chips, and combine SunOpta's conversion technology with Central Minnesota Ethanol Co-op's existing infrastructure, raw materials supply sources and operating experience. In addition to producing ethanol, the facility will also generate its own electricity based on a system to be engineered by Bell Independent Power. SunOpta President Murray Burke said it's unlikely the group will sell electricity to the grid.
The objective of the second phase, which is slated to begin this fall, is to reduce capital and variable costs by 10 to 15 percent, as well as getting all permits in place, Burke said.
"We are very appreciative of the support given to us by the state of Minnesota," Burke added.
Toronto, Ontario-based SunOpta Bioprocess Inc. recently announced that Central Minnesota Cellulosic Ethanol Partners, a joint venture between SunOpta, Central Minnesota Ethanol Co-op and Bell Independent Power Corp., was notified by the Minnesota Department of Agriculture that it was awarded a NextGen matching grant of approximately $1 million.
The funding will be used to support the second-phase of the project which includes a feasibility study and detailed engineering for a commercial-scale 10 MMgy cellulosic ethanol plant. Each party owns one-third of the project.
A total of eight renewable energy and advanced biofuels-related projects received awards that were announced by Minnesota Gov. Tim Pawlenty at the University of Minnesota-St. Paul campus on Nov. 6. In 2007 Gov. Pawlenty established the Next Generation Energy Act, which provided for a board to focus on the development of next generation energy and biofuel policies, as well as make recommendations to the governor and legislature about possible state investments to help achieve energy independence.
In November 2007 SunOpta and Central Minnesota Ethanol Partners signed a letter of intent to complete a feasibility analysis and engineering study which would result in the parties jointly constructing, owning, and operating a 10 MMgy cellulosic ethanol plant to be collocated with the Central Minnesota Ethanol Co-op's existing 21.5 MMgy ethanol plant in Little Falls, Minn.
Burke said the first feasibility study took approximately six months; he expects the second to take about the same amount of time. "The first was completed to ensure there were no show stoppers," Burke said. "Fiber supply, fiber cost and availability, permitting issues, capital costs, variable costs—and there weren't any."
The proposed plant will use locally obtained wood chips, and combine SunOpta's conversion technology with Central Minnesota Ethanol Co-op's existing infrastructure, raw materials supply sources and operating experience. In addition to producing ethanol, the facility will also generate its own electricity based on a system to be engineered by Bell Independent Power. SunOpta President Murray Burke said it's unlikely the group will sell electricity to the grid.
The objective of the second phase, which is slated to begin this fall, is to reduce capital and variable costs by 10 to 15 percent, as well as getting all permits in place, Burke said.
"We are very appreciative of the support given to us by the state of Minnesota," Burke added.
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