Comstock Fuels executes international license agreement with SACL; 3 refineries with combined 1.25M metric tons per year capacity
20 September 2024
Comstock Inc. executed a binding agreement between Comstock Fuels Corporation and SACL Pte. Limited, a Singapore-based renewable fuel project developer, engaged in the delivery of several biofuel production facilities and hybrid renewable energy projects under which Comstock Fuels agreed to grant SACL an exclusive marketing agreement for Comstock Fuels’ advanced lignocellulosic biomass refining processes in Australia and New Zealand.
SACL and its associated stakeholders have identified three initial sites for the construction of three refineries based on Comstock’s industry-leading yields and decarbonizing impacts, including (1) a 250,000 metric ton per year (MTPY) refinery located in southeastern Australia; (2) a 250,000 MTPY refinery located in northwest Australia; and (3) a 750,000 MTPY refinery located on the east coast in northern Australia.
Under the terms of Comstock Fuels’ agreement with SACL, Comstock Fuels will contribute site-specific technology rights in exchange for a 20% equity stake in each refinery, plus a royalty fee equal to 6% of each refinery’s sales of licensed products, and engineering fees equal to 6% of total capital and construction costs.
At least one of the refineries will initially start with a capacity of 50,000 MTPY prior to scaling-up to 250,000 MTPY or more, with early adopter royalty fees of 3% of sales and engineering fees equal to 3% of construction costs until scaling-up to 250,000 MTPY, including initial upfront payments of $2,500,000 payable upon execution of each site-specific applicable license.
The SACL facilities will have an estimated total construction cost of about $2.4 billion and produce more than 160 million gallons per year of gasoline, SAF, and other renewable fuels from lignocellulosic biomass (on a gasoline gallon equivalent basis (GGE)), and about 140 million GGE from vegetable oils, with more than $1.5 billion per year in sales at current market prices.
Comstock Fuels offers advanced lignocellulosic biomass refining solutions that produce market-leading yields of cellulosic ethanol, gasoline, renewable diesel, sustainable aviation fuel, and other renewable fuels at extremely low carbon intensities.
The Comstock Fuels process generally involves:
digestion and fractionation of lignocellulosic biomass;
bioconversion of cellulose into Cellulosic Ethanol;
esterification of lignin and other derivatives into Bioleum Oil. Bioleum is a proprietary, unique blend of deoxygenated hydrocarbons that is suitable for hydroprocessing, resulting in more than 100 gallons of low-carbon biofuels per tonne of biomass on a gasoline gallon equivalent energy basis;
hydrodeoxygenation of Bioleum Oil into Hydrodeoxygenated Bioleum Oil (HBO);
refining of these extremely low carbon oils and fuels into ASTM compliant renewable fuels; and
gas-to-liquids emissions capture and fuel conversion.
The first five of these processes are proven to produce up to 125 GGEs per dry metric ton of feedstock on a gasoline gallon equivalent basis, depending on feedstock, lignin content, site conditions, and other process parameters, with extremely low carbon intensity scores of 15.
SACL is a Singapore-based project development and management company that intends to develop renewable energy projects in Australia and New Zealand.
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