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Fulcrum awards EPC contract to Abengoa

US-based Fulcrum BioEnergy, Inc., has announced that it has awarded a US$200 million fixed-price engineering, procurement, and construction (EPC) contract to Abengoa for the construction of the company's first municipal solid waste (MSW) to transportation fuels facility, the Sierra BioFuels Plant. The Sierra BioFuels Plant will utilize Fulcrum’s process for converting MSW into renewable syncrude that will be upgraded to jet fuel.

According to a statement, Abengoa will construct Fulcrum Sierra BioFuels under a fixed price contract that guarantees the schedule, start-up, and performance of the plant.

Abengoa is the seventh largest EPC company in the US and is one of, if not, the premier engineering and construction firms in the renewables space. They have the demonstrated experience and capabilities and have stepped up and made the business commitments to get the job done for us. We are eager to add Abengoa to our team. Abengoa has the skill and horsepower to take our design and technology development and successfully turn it into an operating commercial plant, said E. James Macias, President and Chief, Executive Officer, Fulcrum BioEnergy.

Located approximately 20 miles east of Reno, Nevada in Storey County, Sierra will produce renewable syncrude that will be upgraded to over 10 million (US) gallons (≈ 39 million litres) of jet fuel annually while diverting more than 200 000 tons of MSW from the local landfill when it enters commercial operations in the third quarter of 2017.

Sierra will provide numerous benefits for Northern Nevada including diverting large volumes of municipal waste from the landfills, significantly lowering carbon emissions and stimulating economic growth in Nevada by creating more than 500 engineering, construction, and operations jobs.

Abengoa is an important strategic partner for Fulcrum and will continue to help advance Fulcrum’s development program. Fulcrum has entered into numerous strategic relationships throughout the value chain including waste services companies, technology providers, and product offtake companies.

Last year, Cathay Pacific Airways became an equity investor in Fulcrum and entered into a long-term fuel offtake agreement. Fulcrum also entered into key relationships with the United States Department of Defense and the United States Department of Agriculture (USDA) for the construction of Sierra.

With long-term MSW feedstock contracts and fuel offtake agreements in place, Fulcrum is advancing development on additional projects across North America that will have the capacity to produce more than 300 million gallons (≈ 1.14 billion litres) of low-carbon, renewable transportation fuels annually.

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