KiOR Receives $100M in Equity Financing

Joanna Schroeder

KiOR, has announced the execution of $100 million in committed equity related financing in two separate private placement transactions to support the Company’s recently announced expansion of production capacity in Columbus, Mississippi, called the Columbus II Project. Once completed with the planned technology enhancements for both Columbus facilities, the Columbus II Project is expected to achieve overall positive cash flow from operations for KiOR.

KiOR Columbus I projectIn the first private placement, KiOR has received $85 million of committed equity related financing from Khosla Ventures III, and various other Khosla entities. This financing consists of the immediate issuance of $42.5 million of Senior Secured Mandatorily Convertible Notes (“Notes”) plus the conversion of $53,197,308 of the Company’s existing senior debt held by the Khosla entities. The Notes will convert into Class A Common Stock at a price of $2.897 per share.

Also as part of this transaction, the Company has received commitments to purchase up to an additional $42.5 million of Class A Common Stock, either through the direct issuance of such equity or conversion of Notes. The conversion of the Notes and the future equity related commitments are contingent upon, among other things, the Company fully funding the Columbus II Project, which it expects to complete through a debt offering, and certain timing restrictions.

“Khosla Ventures and I have reviewed independent reports on the assessment of the technology and conducted our own significant due diligence as part of this commitment. We are pleased to invest in KiOR with Gates Ventures in this equity financing for the Columbus II Project,” said Vinod Khosla.

“I believe that KiOR’s technology for production of cellulosic biofuels can not only serve as the foundation for a successful and sustainably profitable long-term business but can also scale because of the hundreds of saw, pulp and paper mills that have been shut down and have local feedstock available, providing a much more stable and less price volatile feedstock than oil, while fueling the world’s transportation requirements with significantly less geopolitical risk and greenhouse gas emissions on a life cycle basis,” Khosla added. “I expect, as the technology matures over the construction and operation of multiple facilities, it will achieve cost parity with many traditional oil sources such as new deep offshore projects and oil sands, without subsidies.”

In the second private placement, KiOR has received $15 million of committed equity financing from new investor Gates Ventures, LLC, an affiliate of Bill Gates. Read More

advanced biofuels, Alternative energy, Cellulosic

Biogas Project Added at Middlesex Water Company

Joanna Schroeder

A new biogas system designed to optimize the production of electricity from methane has been completed in the Village of Ridgewood, New Jersey. Partners in the project included Natural Systems Utilities (NSU), Middlesex Water Company (MWC) and American Refining and Biochemical (ARB). The biogas project will power the water pollution control plant and reduce its electric demand on the grid, lowering its utility costs.

Middlesex Biogas Project“Our public private partnership with NSU, Middlesex and ARB makes Ridgewood a national leader in sustainable municipal wastewater treatment,” said Village of Ridgewood Mayor Paul Aronsohn. “Producing energy at our facilities reduces cost while powering the facility with 100 percent renewable energy provides environmental benefits for the community. To be able to accomplish this at no capital cost to the taxpayer while realizing environmental benefits for the Village is something we can all take pride in.”

NSU, MWC and ARB, through a 20-year partnership with the Village of Ridgewood, made the up-front capital investment in the retrofit that enables the plant, through a new biogas fueled engine generator, to use an anaerobic digestion process to convert methane gas to electricity. In addition, the production of electricity is enhanced when food wastes such as fats, oils and grease are introduced into the process. The heat required for the anaerobic digester is also generated by the biogas, further increasing plant efficiency and reducing emission of greenhouse gases.

This biogas conversion facility now has the ability to capture the energy from methane gas that was previously flared into the atmosphere, and convert it into renewable power. The project also incorporates four solar installations located throughout the Village: Village Hall, the Fire Department, the EMS Building and the Water Control Pollution Facility. Together, enough energy is generated to power the wastewater treatment plant.

“Many municipalities are struggling with aging infrastructure, underperforming utility facilities and severely constrained municipal budgets. This project demonstrates how partnerships with municipal and industrial leaders can achieve a lower carbon footprint while converting wastes to valuable resources for use in the local community. By repurposing an existing facility in this way, everyone benefits — the environment, the Village residents and our renewable energy investors,” said Dominic Kulik, CEO and Chairman, NSU.Read More

biogas, Renewable Energy

Tax Incentives Up Chinese Biodiesel Imports

John Davis

ch-lgflagTax and trade incentives are fueling a surge in China’s biodiesel imports. This article from Reuters says the world’s second-largest oil consumer is using the green fuel to replace petroleum-based diesel.

Top state refiners Sinopec Corp and PetroChina are already expected to boost shipments of the fuel after Beijing approved large export quotas for the fourth quarter…

Imports of diesel are subject to stringent conditions: only companies approved by the government and granted import licenses can bring in the fuel. But regulations governing biodiesel imports are less robust and private companies are allowed to ship in the fuel, a second trader involved with the trade said.

Biodiesel shipments from member countries of the Association of Southeast Asian Nations (ASEAN) to China are also exempt from import taxes according to a free trade agreement inked between the two regions, said sources involved in the trade.

Biodiesel containing less than 30 percent of biofuel is classified as “petroleum”, while biodiesel containing 30 percent or more of biofuel is categorised as “miscellaneous chemical products,” according to a 2012 edition of China’s customs rules.

Most of China’s biodiesel imports come from Malaysia, Thailand and Indonesia.

Biodiesel, International

Sustainable Certification for Biodiesel Feedstock Co.

John Davis

RSBA Spanish company dealing with the biodiesel feedstock camelina has earned an important sustainability certification. This article from BioFuels Journal says Camelina Company España (CCE) picked up the Roundtable on Sustainable Biomaterials’ (RSB) certification for its work to make fuel and chemicals from camelina.

RSB’s sustainability certification covers Camelina Company’s office in Madrid, over 150 farmers in the regions of Castilla La Mancha and Aragón, mainly, the logistics centre, in Albacete and the grain crushing facility in Tarancon.

“CCE has pioneered the production of sustainable road and aviation biofuel in Spain from this promising new source.

“The company guided farmers and the crushing facility through certification for the first time demonstrating that large groups of farmers can be certified successfully and efficiently according to the requirements of the RSB Standard,” said Peter Ryus, RSB Services’ CEO.

Camelina in Spain is raised in arid areas by farmers looking for an oilseed alternative in their crop rotations.

Biodiesel, International

Global Farmers Learn Value of Ethanol

Cindy Zimmerman

corn-couserEach year during World Food Prize week, the Truth About Trade and Technology Global Farmer Roundtable brings farmers from all over the world to visit Couser Cattle Company in Nevada, Iowa.

Owner Bill Couser not only produces cattle, he also grows plenty of corn on his operation and is a big proponent of ethanol as a means of getting the most out of every kernel. “It’s no different than a barrel of crude. We don’t just get gasoline from a barrel of crude. We take it apart and get many different things,” he said. “When we look at corn, we can feed it, we can take it to ethanol plants, we can sell it domestically, we can sell it abroad.”

As a founder of Lincolnway Ethanol plant, Couser is really excited about the cellulosic project with DuPont using corn residue. “We’ve got the residue there and if we manage it correctly, we have a new cash crop,” he said. Interview with Bill Couser

Couser, who is also a former president of Iowa Renewable Fuels Association, showed a powerpoint presentation adding up the multiplier effect of a single acre of corn going to an ethanol plant. When he figured that final amount corn was $7 a bushel and it added up to over $12,000 per acre. But even at $3, it’s still nearly $8,000. Watch the video to see how he determines that.

2013 TATT Global Farmer Roundtable photos

Audio, Cellulosic, corn, Ethanol, Ethanol News, Iowa RFA, livestock, livestock feed

AFAI Launches “Jetropha” Campaign

Joanna Schroeder

optimal_growth_jatropha_trees_-_2012_20130219_1955646226Alternative Fuels Americas (AFAI), an advanced biofuels company, is launching Project Jetropha, a campaign to encourage and promote the use of Jatropha based biofuels in aircraft. The project website will be launched in the coming weeks.

“The aviation industry has been under pressure to lower its disproportionately high contribution to carbon emissions,” said CEO Craig Frank. “With fuels costs comprising up to 50% of total costs, industry leaders such as Richard Branson, United Airlines, KLM, Lufthansa, Jet Blue, AeroMexico and others have embraced biofuels as part of an affordable solution.”

“Project Jetropha – through Jetropha.com will provide a platform for discussions, a forum for the exchange of information, and a voice to the Jatropha sector,” added Frank. “The time has come for us to assume a leadership role. Project Jetropha will provide great benefit to the industry as well as significant opportunities for AFAI, and rightfully establish AFAI as a leading force in the biofuels sector.”

advanced biofuels, aviation biofuels, feedstocks

Denmark Awarded for Climate Achievements

Joanna Schroeder

Denmark has received the “Gift to the Earth” from WWF, for their climate achievements and its commitment to achieve 100 percent renewable energy across the economy by 2050. Jim Leape, WWF International Director General, will present the report to the Prime Minister of Denmark, Ms. Helle Thorning-Schmidt on October 21, 2013.

“Denmark shows that it is possible to develop a sustainable society and at the same time secure economic growth and welfare. It is the lighthouse we need to show that change is possible. Hopefully other countries will look toward Denmark for inspiration to rise to the urgent challenge of protecting the Earth’s climate. As a global conservation organization, WWF recognizes Danish leadership on this important matter,” said Leape.

WWF The Energy Report coverWWF says in The Energy Report, 100% Renewable Energy by 2050, that the world must develop an equitable low carbon economy by 2050, an achievable goal. However, WWF says the world is not reacting quickly enough.

The UN’s Intergovernmental Panel on Climate Change (IPCC) has just re-confirmed in their latest report that the Earth is warming at an alarming rate. The report shows these temperature changes are already having serious consequences for people and nature and recommends more than two thirds of presently existing fossil fuel reserves must stay in the ground to address climate change. In addition, major investors – including governments – must shift their focus to enabling renewable energy and phasing out investment in fossil fuels, especially coal.

“We know that the world’s current economic growth model is no longer sustainable. Denmark is demonstrating strong leadership by showing the potential for long-term sustainable growth through the development of renewable energy and energy efficient solutions,” added Leape.

Gitte Seeberg, WWF-Denmark CEO, is proud to promote Denmark as a global example of how the climate challenge can be addressed. “Since the oil crisis in the 1970s the Danish Parliament has had a strong and long tradition of cooperating on renewable energy and energy efficiency policies. We are thrilled that the present government and Parliament has taken even further ambitious steps to bring Denmark on the safe road towards a 100% renewable society in 2050.”

Clean Energy, Climate Change, Environment, Renewable Energy

BioEnergy Bytes

Joanna Schroeder

  • BioEnergyBytesDFMorrison & Foerster has announced that Jeffrey A. Chester, a project finance and renewable energy lawyer, has joined the firm as a partner in Los Angeles. Chester will advise on global capital-raising transactions for the renewable and alternative energy space. He has closed more than 50 wind-power and two dozen solar-power project financings, including a 1,550-megawatt power purchase agreement by Southern California Edison, the largest wind-power purchase agreement in history.
  • Rio Rancho Public Schools has completed a 2,357-kilowatt solar power project. The school system has recently completed two ground-mounted solar arrays at Cleveland and Rio Rancho High Schools. Each system is approximately 1,200-kilowatts and consists of more than 4,000 Coenergy solar panels.
  • LanzaTech, a producer of low-carbon fuels and chemicals from waste gases, has been ranked #2 in Biofuels Digest’s annual list of the 50 Hottest Companies in Bioeenergy and #4 in its 30 Hottest Companies in Biobased Chemicals. LanzaTech is one of only two companies to be ranked in the top 5 in both lists.
  • DuPont Photovoltaic Solutions (DuPont) and the Solar Energy Industries Association (SEIA) have announced they will host a key panel discussion at the upcoming Solar Power International Conference in Chicago, Illinois October 21-24, 2013, which will bring together leading representatives from across the solar industry to examine the importance of balancing costs with reliability and durability for solar systems.
Bioenergy Bytes

ChargePoint Invests for Massive EV Adoption

Joanna Schroeder

ChargePoint has teamed up with Key Equipment Finance, one of the nation’s largest bank-held equipment finance companies and an affiliate of KeyCorp, to spur mass electric vehicle (EV) adoption throughout the country. The two companies have launched a $100 million lease-to-own program for EV charging stations that will give small and medium sized companies and municipalities the opportunity to install EV chargers at no upfront cost. According to ChargePoint, this is the first comprehensive, turn-key program that allows for pay-as-you-go financing of charging stations, installation costs, operational services and warranty.

charge-point-stationThe new initiative known as The Net+ Purchase Plan can provide a net positive cash flow for companies or public entities depending on charging usage.

“Through this program, companies and municipalities can now offer their workforce EV charging for no more than the price of a couple of cups of coffee per day,” said Pasquale Romano, CEO of ChargePoint. “By providing EV charging to workers, employers are essentially giving their employees a raise of up to 5% as a result of reduced fuel costs. In addition, companies increase productivity, allow their employees HOV lane access, and support important sustainability and environmental policies. This is a win-win-win for employers, employees, and our communities.”

ChargePoint says the program is the first large scale financing solution offered in the EV market to address a known barrier to EV adoption. Fashioned after the success in the solar industry, the innovative purchasing program should drive adoption by significantly lowering up front installation costs.

“We are thrilled to partner with ChargePoint to offer flexible financing options to companies and municipalities interested in installing EV charging stations,” said Tim Duerr, senior vice president of business development at Key Equipment Finance. “This program makes it much easier for municipalities and businesses with budget or cash-flow constraints across the U.S. to cover both the hard and soft costs associated with EV chargers, and we look forward to seeing this program grow as more organizations realize how cost-effective and beneficial EV chargers can be.”

Alternative Vehicles, Electric Vehicles

Mixed Results on Impact of Govt. Shutdown

Talia Goes

zp-nhOur latest ZimmPoll asked the question, “ Is shutdown affecting you?” Well, it’s a moot point now since the shutdown is over (for the time being). Our poll results were pretty well mixed though.

Our poll results:
· Yes, in a minor way –23%
· Not at all – 23%
· Can’t tell a difference – 25%
· Not yet 16%
· Yes, in a major way 10%
· Other 4%

Our new ZimmPoll is now live and asks the question, “What is most important to you when buying food?” What are those key drivers or influencers that you’re faced with at the grocery store? Let us know!

ZimmPoll