SG Preston and IHI E&C partner on portfolio of renewable diesel and jet plants; 5 initial sites, 600M gallons total capacity
SG Preston, a Philadelphia-based bioenergy company, is partnering with IHI E&C, a Houston-based engineering, procurement and construction (EPC) subsidiary of Japan’s IHI Corporation, to develop and to construct a series of commercial-scale renewable diesel and jet fuel manufacturing plants, initially in the US Midwest and Canada.
The plants will use licensed, proven, commercial-scale technologies for the production of renewable diesel and jet fuel targeting US and global industries seeking a volume-based, competitively priced solution to their environmental sustainability mandates. SG Preston will deploy its biofuels strategy initially at five plants (South Point and Van Wert, Ohio; Logansport, Indiana; and two additional, to-be-announced sites, one in Michigan, and one in Ontario, Canada), each with an initial capacity to produce 120 million gallons of renewable diesel and jet fuel annually.
SG Preston says that both the South Point (announced in August 2014) and Logansport (December 2014) plants will use waste plant oils as feedstock. Both plants were projected to cost some $400 million each.
IHI E&C will serve as turnkey EPC to SG Preston’s biofuels initiative, delivering “lump sum,” fixed price engineering and construction, a first in the renewable diesel and jet fuels landscape at commercial scale.
IHI E&C will steward and guide SG Preston’s Multi-Facility Program to create and standardize replication benefits in engineering and design targeted at delivering volume quantities of advanced renewable diesel and jet fuel to global market customers in an abbreviated timeframe. This will include abbreviated estimate development and synergies in procurement, construction, commissioning, and plant start-up.
IHI E&C is a perfect fit for our US and global strategic vision. The need to drive thought leadership and momentum toward tangible solutions in the US alternative energy market has become a strategic imperative that we intend to lead in alliance with global blue chip partners in engineering and construction, technology and manufacturing.
We have maintained our commitment to focused execution of our volume-based advanced biofuels plan. We are extremely pleased to launch this industry-changing initiative in coordination with IHI E&C as a part of our integrated system of global, blue chip partners to rapidly take strategy and concept into design, engineering and execution at commercial scale.—R. Delbert LeTang, SG Preston President and Chief Executive Officer
SG Preston’s business model integrates bioenergy development and a market service strategy into existing delivery systems for energy supply and development across the entire value chain. SG Preston will provide immediate partnering solutions to the global aviation industry, with targeted, competitive value-added market offerings.
Philadelphia, PA-based S.G. Preston Company was founded in 2012 by R. Delbert LeTang as a global, fully integrated developer and operator of sustainable bioenergy fuelstocks, products, and waste-to-bioenergy systems.