LANCASTER, Pa. and CHICAGO, June 24,
2024 /PRNewswire/ -- New Energy Blue, the clean-energy
developer whose technology converts agricultural waste into
lowest-carbon biofuels and biochemicals, and ARCO/Murray, one of America's largest, most
experienced, and fastest-growing construction firms, today announce
a partnership to build out the New Energy Biomass Refinery designed
platform across the American Midwest.
ARCO/Murray will construct the
flagship New Energy Freedom biomass refinery in Mason City, Iowa, to sustainably process corn
stalks into second-generation fuel ethanol and clean lignin at
large commercial capacity. The partners have agreed to a
$650 million construction contract.
In 2023, New Energy Blue completed the design engineering, obtained
local permits to proceed, and conducted field trials of new
harvesting methods and machinery; in 2024, the project entered the
final investment decision (FID) phase. The partners plan to break
ground later this year and start up the refinery in
2026.
The significant economic impact anticipated is comparable to
that typically seen with first-generation ethanol facilities. In
Iowa, the state responsible for
approximately one-quarter of U.S. production, the industry
contributes about $8 billion to
household incomes annually and 100,000 indirect and induced jobs.
The construction of the Freedom refinery in Mason City is projected to generate between
400 and 500 high-paying construction positions over a 20-month
period. Refinery operators and feedstock suppliers from New Energy
Farmers aggregation team will hold about 70 permanent jobs carrying
an annual payroll of $7 million. The
economic ripple effects will likely support another 5,000 jobs.
Local corn growers stand to benefit by not only selling their
excess corn stalks to the refinery but also participating in
profit-sharing through the New Energy Farmers business
unit.
Patrick Hidder, Executive Vice
President of ARCO/Murray's Green
Infrastructure team, says, "We are excited to partner with New
Energy Blue on this groundbreaking biomass refining project,
reflecting our shared commitment to sustainability and innovation
in the renewable energy sector. We welcome the opportunity to help
launch a nascent industry dedicated to decarbonizing this country's
fuel and chemicals."
James Foster, Vice President of
Construction for New Energy Blue, says the selection of
ARCO/Murray as engineering,
procurement, and construction (EPC) contractor "has paid off
immediately. Their involvement is letting us accelerate the project
schedule, manage costs, and provide the necessary bonding capacity
needed to satisfy finance. ARCO/Murray's expertise in process piping, water
treatment, anaerobic digestion, and power solutions has already
added significant value."
Following Freedom's successful completion, New Energy Blue and
ARCO/Murray have agreed to extend
their partnership to four more New Energy biomass refineries in the
next five years, clustered near the first to take advantage of the
area's superabundance of corn stover. Harvesting within a 30-mile
radius of each operation makes it possible to build refineries with
twice the output of Freedom.
As the refineries proliferate, New Energy Blue CEO Thomas Corle says he intends to license the
technical and business model in order to allow faster replacement
of fossil oil and gas-refined fuels and chemicals with
biomass-refined. "ARCO/Murray is
right-sized to handle the construction–$6.8 billion in revenue in
2023, and a history of 5500 finished projects."
Lee Stellakis, Chief Operating
Officer of ARCO/Murray, believes
the investment made in this partnership presents a huge growth
potential in green infrastructure construction, which his
management sees as essential to a sustainable future. He's
especially enthusiastic about the important role carbon-zero
renewable fuels will play in transforming auto and airline travel
by reducing atmospheric emissions.
The new partners envision exponential growth: 15 biomass
refineries operating by 2030, 150 by 2040, and 500 by
2050—generating an annual total of 21 billion gallons of 2G ethanol
from leftover stalks and straws as well as perennial energy grasses
like miscanthus. Predictions based on New Energy Blue's latest
independent life-cycle analysis are heartening: 500 refineries can
keep more than 130 million tons of CO2 out of the atmosphere every
year, an essential reduction in the effects of climate extremes on
human health.
In 2019, New Energy Blue purchased exclusive rights to its
Inbicon technology from Ørsted, Denmark's largest energy company. "Many of us
worked on the team to prove and market the original conversion
technology and, in 2010, to construct our predecessor biomass
refinery in Kalundborg, Denmark.
It's now owned and managed by Meliora
Bio, and still processes Danish wheat straw into 2G ethanol
and various coproducts," Corle says.
New Energy Blue has made important process optimizations over
the years. To assure dependable execution of its design, it counts
on longstanding relationships with proven suppliers like two
European specialists: Processbio for its automated front-end
bale-handling system and Valmet for the thermal reactors that cook
the biomass. The cooking facilitates the release of cellulosic
sugars and the extraction of clean lignin, the woody structure of
the corn stalk. The cellulosic sugars are fermented into 2G ethanol
for auto fuel or downstream conversion into biochemicals. The
extracted lignin is used in the production of polymers and binders,
serving as sustainable alternatives in road construction and
replacing traditional oil and gas components in the manufacturing
of eco-friendly polyesters, polyurethanes, and resins.
About New Energy Blue:
New Energy Blue is a clean-energy developer dedicated to
designing, owning, and operating next-generation biomass refineries
in closer harmony with nature's carbon cycle. Built on an
innovative technical and business platform, the new refineries
convert agricultural waste like corn stalks and grain straws into
greener renewables like zero-carbon or carbon-negative fuels,
chemicals, and plastics that can sustainably and profitably replace
petroleum-based products. Offices in Lancaster, Pennsylvania and Mason City, Iowa. Learn much more at
www.newenergyblue.com.
About ARCO/Murray:
ARCO/Murray is a national
leader in the design-build construction industry with over 30 years
of experience and a commitment to delivering innovative and
cost-effective solutions. With 40 offices across North America, ARCO/Murray has successfully completed over 5,500
projects, generating $6.8 billion in
revenue in 2023. The company prides itself on integrating design,
engineering, and construction services, ensuring a seamless and
efficient construction process for clients.
ARCO/Murray's Green
Infrastructure team is dedicated to supporting companies that are
transforming industries for a greener future. Specializing in
complex engineering solutions and sustainable construction
practices, the team focuses on environmentally friendly projects
that drive the adoption of renewable energy and sustainable
technologies. Their expertise enables ARCO/Murray to partner with forward-thinking
companies like New Energy Blue, delivering innovative facilities
that contribute to a more sustainable world.
Media Contact:
Roger Moore, New Energy Blue
717-224-0245
rogermoore@newenergyblue.com
Kelly O'Hara, ARCO/Murray
kohara@arcomurray.com
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SOURCE New Energy Blue