Gilroy plant would be the first of its kind in the world; could
bring nearly 200 jobs to the city
An East Coast bio-energy company blazing the way in aviation technology has announced that it plans to build the world’s first commercial-scale, renewable jet fuel production plant using biomass and trash. And Gilroy is the spot.
This is a major accomplishment for the garlic city that has struggled to compete with San Jose and other Bay Area cities to lure high-tech jobs and green companies to the area. The Solena Group, based in Washington D.C., could bring about 200 jobs to Gilroy and expects to start building the $250 million facility in 2009 along with Rentech, a coal-to-liquid production company, according to Solena Chief Scientist Dennis Miller. Fuel production, at a rate of about 1,800 barrels per day, will likely begin in 2011.
The company’s patented technology converts biomass in municipal waste into renewable synthesis gas, or “Bio-SynGas.” Then Rentech technology converts this gas into renewable jet fuel, all without nearly any harmful emissions.
“This would be a tremendous improvement over the petroleum-based fuel being used everywhere,” Miller said.
While Solena representatives cautioned that nothing is final, they said they have been in negotiations with Norcal Waste System for about a year to lease its landfill site east of Gilroy on Pacheco Pass Highway. That way Solena could use existing infrastructure and have easy access to agricultural, forestry and municipal waste, which it will harness for power and fuel production, Miller said. PG&E has also expressed interested in buying excess energy from the company, according to Gilroy’s Economic Development Corporation President Larry Cope.
“One of the reasons Gilroy looked so good is because it’s close to the grid and close to the facilities that would make use of aviation fuel. It’s also outside of major population areas, so there’s less concern about trucks and fuel production,” Miller said.
Cope added that Gilroy sits at “the crossroads of green technology,” and that the Norcal site offers access to raw material and U.S. 101 and Highway 152, which both feed to major metropolitan areas. Plus, Gavilan College has biotechnology grants and programs to train base-level technicians the plant will need to hire, and there’s a large agricultural population around Gilroy that could turn some of their stinky waste into clean fuel, Miller said.
“In Gilroy, we’d certainly like to find that kind of (labor) capability in the universities because it would be good practical experience for students and professors,” said Miller, adding that Solena has worked with colleges in Spain and Puerto Rico on similar projects.
Cope agreed.
“This is exactly in line of what we’ve been working toward,” Cope said Friday shortly after he announced the Solena project to his board. “This is a unique opportunity for Gilroy.”
A unique opportunity for California as a whole, too.
Sacramento enthusiastically welcomed the idea of turning biomass and agricultural waste into fuel, and state officials provided attractive wholesale prices for renewable power, Miller said. They also encouraged Solena to work with landfill owners and municipalities to strike an arrangement. Norcal is one of the state’s largest waste authorities, and Miller said it also exhibited some of the most futuristic thinking he had seen.
The new Solena facility will be developed, designed, built, owned and operated by a group of corporations including Solena Group and Rentech. Deutsche Bank AG London will arrange the finances for about $250 million, and Miller said the company will seek additional financing from Norcal and community members, as well.
Funding aside, commercial airline companies and the U.S. Air Force have expressed interest in the Solena project, Miller said.
“They’re all interested in this type of fuel,” Miller said.
By mandate, the USAF and other defense agencies must convert portions of their aviation fleets to non-petroleum-based products, which translates into hundreds of thousands of barrels each day. U.S. airlines purchase about 1.3 million barrels of jet fuel each day, and the USAF buys about 300,000 a day.
The new fuel will reduces green house gas and CO2 emissions because it relies on converting biomass and has net-zero CO2 emissions. In addition, it frees up corn, wheat and soybeans currently used for ethanol and biodiesel fuel production.
What is biofuel?
The term “biofuel” comes from biorganic fuel, which is the scientific name for animal and plant substances and biodegradable waste that can be burned as fuel. Biofuel releases less carbon dioxide than fossil fuels.
