Cortus signs cooperation agreement to accelerate Mariposa Biomass Project
Swedish biomass gasification technology developer Cortus Energy AB has announced that it has entered into an agreement with US-companies Phoenix Energy Inc., and Clere Inc., to accelerate the progress of the Mariposa Biomass Project in Mariposa, California. Through structured cooperation, the project is expected in spring and summer to obtain the necessary permits and agreements, which are required to ensure the external financing that Cortus Energy needs in order to invest in the project.
According to a statement, the objective of the cooperation is that Cortus Energy will be able to make a decision about the project when its current project in Höganäs, Sweden has been commissioned and the funding for Mariposa been secured.
The company has been part of the Mariposa Biomass Project (MBP) since 2016 and MBP aims to build a WoodRoll biomass gasification plant for cogeneration in Mariposa, California. The California Energy Commission (CEC) decided in March 2017 to support the project with US$5 million with a so-called EPIC grant.
In order to make the project a bankable investment, revenues need to be secured in a twenty-year agreement based on the state programme BioMAT, a five-year fuel supply agreement secured and an environmental permit. Land and utility connection permits have previously been secured, which means that Cortus Energy can apply for the subsidies for electricity supply agreements.
Provided that these prerequisites are in place and with the state’s investment support of US$5 million, it is expected that external co-financing can then be raised for the project. Phoenix Energy and Clere Inc. have been able to run and implement three gasification projects in California in previous project collaborations.
We are very pleased to partner with two competent and experienced partners who will be very helpful in bringing the Mariposa project to fruition. With their knowledge and experience about the gasification business in California, we are now taking a big step forward for a first export venture, said Rolf Ljunggren, CEO, Cortus Energy.