Wood Chip Biofuel Plants to be Built in Mississippi
Kior Acquires $75 million Loans from Mississippi for Wood Chip Biofuel Plants
Texas biofuel company Kior has won funding from the state of Mississippi to build five plants to convert wood chips into a “biocrude” product.
Kior’s process converting wood chips and other biomass into a petroleum replacement uses a proprietary catalyst that can be recovered and reused. The process also produces gases that can be burned to generate enough electricity to run the biofuel production equipment. As a result, the biofuel manufacturing process is cost-effective enough to withstand even further drops in gasoline prices and still remain profitable. Additionally, Kior’s wood chip biocrude petroleum replacement can be delivered and refined using existing crude oil infrastructure. This makes it unique from other biofuel competitors, such as ethanol.
These apparent benefits undoubtedly proved helpful in receiving the needed $75 million in loans from the state of Mississippi to build the biofuel production plants. The fact that the process uses wood chips or agricultural byproducts also makes it appealing to Mississippi, which has significant levels of those resources.
Although a total of five plants are planned, three are scheduled to be built over the next five years. The worker training programs and 1,000 jobs likely to be generated from the new wood chip biofuel production facilities will also be welcome.