Ag residues-to-fuel plant receives funding

California-based San Joaquin Renewables (SJR) says it has reached an agreement with Dallas-based Cresta Fund Management and New York-based Silverpeak Energy Partners so an investment of up to $165 million can be made to develop and construct a biomass to renewable natural gas (RNG) project near McFarland, California.

Frontline BioEnergy, an Iowa- based provider of waste and biomass gasification systems, is developing the project, which will take orchard residuals and shells from San Joaquin Valley farms and convert them into RNG to be sold as transportation fuel.

The project will also sequester carbon dioxide in an EPA Class VI sequestration well located on the project site, according to the investors. When completed, SJR says the new RNG facility will replace the current practice of open burning of agricultural waste with an enclosed system that will produce a non-fossil form of natural gas, capture and store carbon dioxide, and serve as a substitute to diesel, thereby reducing overall greenhouse gas (GHG) emissions.

Frontline BioEnergy staff members helped develop the Chippewa Valley Ethanol Co. facility in Minnesota designed to convert biomass waste into fuel gas for an ethanol plant.

“The San Joaquin Renewables project will be a showcase for Frontline’s advanced gasification technology,” says Frontline CEO Jerod Smeenk. “The finalization of these agreements will allow us to continue expanding the future of renewable energy technology. We believe this project will serve as a model for many more environmental projects.”

Comments SJR President T.J. Paskach, “This project will give California farmers a higher-value outlet for ag waste and will, at the same time, produce super-clean natural gas fuel for displacement of diesel fuel. We’re excited to be building this plant in McFarland and appreciate the collaborative spirit the city leaders have shown us. The environmental benefits to the local residents and the state of California are real and huge.”