Xethanol Corporation (AMEX: XNL), has formed a first-of-its-kind joint venture with Renewable Spirits, LLC to build a biomass-based pilot production facility that uses waste citrus peels as feedstock. The venture is located in Bartow, Florida, the heart of the state’s citrus industry.
The parties expect a pilot plant to produce up to 50,000 gallons of ethanol this harvesting season, and then increasing to over 500,000 gallons per year (GPY). Slated to begin production by the second quarter of 2007, the production technology was developed through a Cooperative Research and Development Agreement (CRADA) with the USDA that converts waste citrus biomass into ethanol, as well as other marketable co-products, such as limonene and citrus oil, to improve the economics of fuel production.
Xethanol will use equipment and production processes from its Permeate Refining test facility in Cedar Rapids, Iowa to build the pilot plant. This facility had been a pilot plant for testing various sugar based feedstocks; the lessons learned and processing techniques from its operation will be applied to the new citrus project. The inclusion of the Permeate equipment will allow the Company to evaluate and maximize this technology in a much timelier manner.
“Here’s what’s exciting: The next time you drink grapefruit juice, remember we will be making ethanol from what’s left of the fruit. We are extremely excited to advance the efforts to convert biomass to ethanol with the use of citrus peels, a very promising feedstock,” said David Ames, president and CEO of Xethanol. “We are also extremely proud to be partnering with leading scientists from the USDA to extend their breakthrough work into the pilot production phase. This project is a perfect example of how Xethanol is executing on its unique strategy of partnering with best-in-class research institutions and developing regional footprint facilities whereby ethanol production is located adjacent to the biomass feedstock.”
In juice processing, half of a citrus fruit is waste. Converting this waste into ethanol creates a tremendous economic opportunity for America’s citrus growers. Co-locating the processing facility adjacent to the biomass source also helps to reduce the transportation and shipping costs associated with production.
There are more than 35 major citrus producers located in Florida that collectively produce waste that could be converted to more than 80MM GPY of ethanol.
Renewable Spirits, an investor group, has spent the last two years working with the USDA to develop the technology used in the pilot plant, and has been successful in removing limonene from the peel, allowing for the fermentation of the sugars in the peel and batch distillation of ethanol at the USDA laboratory in Winter Haven, FL. USDA scientists say this is the first facility of its kind.
Doug Westfall, President of Renewable Spirits, said “Xethanol’s acquisition of this technology allows for a much quicker path to commercial applications. We believe that there is tremendous potential for citrus to ethanol production in central Florida, and that this is a winning proposition for both the citrus and ethanol industries.”
Xethanol Corp’s business model is based on developing small regional production facilities, located at or near the source of waste biomass. Xethanol currently owns and operates a 5 MGPY corn-based ethanol facility in Blairstown, IA.
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