Ensyn Fuels, a wholly-owned subsidiary of Ensyn Corporation, has signed a contract with Memorial Hospital of North Conway, New Hampshire for the supply of RFO (Renewable Fuel Oil), Ensyn’s advanced cellulosic biofuel. (Earlier post.)
Ensyn’s patented RTP (Rapid Thermal Processing) pyrolysis technology is a processing system that uses heat to thermally crack carbon-based feedstocks such as wood biomass (cellulose, lignin) into high yields of a higher-value liquid product. Dried wood is typically converted to approximately 75% (by weight) liquid with the balance converted to combustible gases and char.
Ensyn’s RFO, produced from forest residues via RTP, will be used by Memorial as a heating fuel, replacing petroleum-based fuels. This initiative will lower Memorial’s environmental footprint and will provide Memorial with net cost savings. Under the contract signed with Memorial, Ensyn Fuels will provide Memorial with approximately 300,000 gallons/year of RFO for a renewable term of five years, commencing deliveries as early as April, 2014.
Adoption of Ensyn’s RFO will allow Memorial to convert its entire heating requirements from petroleum fuels to Ensyn’s renewable fuel. This will reduce Memorial’s greenhouse gases from heating fuels by approximately 85% and total air emissions by approximately 75%. In addition, adoption of Ensyn’s RFO will provide Memorial with substantial cost savings.
Memorial will be able to use its existing boilers to combust the new fuel. Ensyn Fuels will supply the onsite tankage and the RFO delivery system to the boiler.
Ensyn Fuels will initially supply RFO to Memorial from its production facility in Renfrew, Ontario. This plant has recently been qualified by the US Environmental Protection Agency (EPA) under the US Renewable Fuel Standards (RFS2) program. Ensyn expects that sales of RFO from this facility to Memorial will qualify for Renewable Identification Numbers (RINs) under the RFS2 program, enhancing contract economics. This contract will be one of Ensyn Fuels’ first contracts for RFS2-eligible heating oil in the US under the recently finalized EPA RFS2 Heating Oil rule.
Ensyn companies have been operating commercially for over 25 years and their RTP technology has produced more than 37 million gallons of fuels and chemicals from wood residues. While commercial production to-date has been focused on heating fuels and chemicals for the food industry, Ensyn is now expanding production to serve a broader base of biofuel clients and applications. The contract with Memorial is one of the first new contracts to be signed committing production from Ensyn’s expanding production capacity and the first supply contract to be signed with a hospital.