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DOE pulls grant funding from BlueFire Renewables cellulosic biofuels plant

2 January 2014

BlueFire Renewables, Inc., a developers of a cellulosic waste facility in Fulton, Mississippi (earlier post) received notice on 23 December that the US Department of Energy (DOE) would no longer provide funding under the company’s DOE grant due to the company’s inability to comply with certain deadlines related to providing certain information to the DOE with respect to future financing arrangements for the Fulton Project. (Earlier post.)

In an 8K filing with the SEC, BlueFire said that it is seeking to re-establish funding under the DOE Grant and has initiated the appeals process with the DOE. BlueFire said it would exhaust all options available to it in order to reverse the DOE’s decision.

BlueFire also asserted that if it failed in reversing the DOE decision, it would devise a new strategy with respect to financing the Fulton Project. BlueFire will deploy any remaining funds from previous DOE funding for the development of the Fulton Project as planned.

BlueFire was established to deploy the Arkenol Process Technology for the conversion of cellulosic waste materials into renewable fuels and other products.

The Arkenol process uses concentrated acid hydrolysis to process cellulosic biomass into simple sugars suitable for fermenting into ethanol. The acid hydrolysis process for alcohol production has been known for more than 100 years, but was characterized by poor yields, high wastage, and a large volume of unmarketable by-products. Arkenol developed methods for efficient acid recovery and reconcentration, and for delivering high sugar concentration at high purity.

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