In the United States (US), engineering, procurement, and construction (EPC) firm Koch Project Solutions (KPS), a subsidiary of Koch Engineered Solutions, and Strategic Biofuels LLC, a developer of negative carbon footprint renewable fuels plants have finalized an agreement on EPC guarantee for a biorefinery project in Louisiana.
The companies have agreed that KPS will construct the Louisiana Green Fuels (LGF) project plant on a lump sum turnkey basis with parent company-backed guarantees with liquidated damages for performance and schedule delays.
Being developed by Strategic Biofuels in Caldwell Parish, Louisiana, LGF aims to convert forestry waste feedstock into cleaner-burning renewable diesel.
Once fully operational LGF would produce approximately 34 million (US) gallons (≈ 129 million litres) of renewable fuel per annum.
Achieving this agreement with Koch further demonstrates our shared goal and commitment to ushering in a new wave of commercial carbon capture projects, changing the industry by offering cleaner solutions, and ultimately pushing the boundaries of what is commercially scalable, said Dr Paul Schubert, CEO of Strategic Biofuels.
FEED startup
KPS will be responsible for constructing, commissioning, and the facility startup which will produce the world’s lowest carbon footprint liquid fuel.
Koch Project Solutions is excited to continue our work with Strategic Biofuels, said Antoine Schellinger, SVP of Corporate Development for Koch Project Solutions.
With this agreement, Strategic Biofuels further solidifies a strong team of industry leaders.
KPS has served in a Project Management role for the LGF Project since its inception in late 2020 and has substantially contributed to the Project’s rapid achievement of major project milestones.
Last month, Strategic Biofuels announced that LGF had moved into the Front End Engineering Design (FEED) or FEL-3 phase of engineering.
Upon completion of FEED, expected in the first quarter of 2023, KPS will provide Strategic Biofuels with a Lump Sum Turnkey price for the plant which will allow Strategic Biofuels to secure project financing and begin construction.
We are confident in Strategic Biofuels’ ability to bring innovative solutions to the market. We look forward to helping move the Louisiana Green Fuels project forward, Antoine Schellinger said.
Biomass and CCS
The project achieves its negative carbon footprint through carbon capture and sequestration (CCS), renewable power, and forestry waste feedstocks.
The LGF plant’s emission for the production of its renewable diesel represents a reduction in greenhouse gas (GHG) emissions of approximately 400 percent relative to fossil diesel fuel.
We are tremendously proud of what has been accomplished to date and know that the invaluable experience and innovative solutions the Koch team brings to the table will have a lasting impact as we move forward together to bring our revolutionary plant online, ended Dr Paul Schubert.
