New Energy Blue Collaborates with ARCO/Murray to Construct Biomass Refineries

New Energy Blue, a developer specializing in clean energy that transforms agricultural waste into biofuels and biochemicals with the lowest carbon footprint, has partnered with ARCO/Murray, a prominent and rapidly expanding construction firm in the United States. Together, they are set to expand the New Energy Biomass Refinery platform throughout the American Midwest.

ARCO/Murray has been tasked with constructing the New Energy Freedom biomass refinery in Mason City, Iowa, where it will convert corn stalks into second-generation fuel ethanol and clean lignin at a significant commercial scale. The construction contract is valued at $650 million. New Energy Blue completed design engineering in 2023, secured local permits, and conducted field trials for new harvesting methods and machinery. Moving into 2024, the project has entered its final investment decision (FID) phase. Groundbreaking is scheduled for later this year, with refinery operations expected to commence in 2026.

The expected economic impact of the Freedom refinery is significant, comparable to that of first-generation ethanol facilities. Iowa, which accounts for approximately one-quarter of U.S. ethanol production, sees the industry contribute about $8 billion annually to household incomes and supports around 100,000 indirect and induced jobs. Construction of the Freedom refinery in Mason City is anticipated to create between 400 and 500 high-paying construction positions over a 20-month period. Approximately 70 permanent jobs with an annual payroll of $7 million will be provided to refinery operators and feedstock suppliers from New Energy Farmers' aggregation team. The economic benefits are projected to ripple out, supporting an additional 5,000 jobs. Local corn growers will benefit not only by selling excess corn stalks to the refinery but also by participating in profit-sharing through the New Energy Farmers business unit.

After the successful completion of the Freedom project, New Energy Blue and ARCO/Murray have committed to expanding their partnership by constructing an additional four New Energy biomass refineries over the next five years. These refineries will be strategically clustered near the first one to capitalize on the ample supply of corn stover in the region. Harvesting materials within a 30-mile radius of each facility enables the construction of refineries with twice the capacity of the Freedom project.

Thomas Corle, CEO of New Energy Blue, aims to license their technical and business model as they expand the number of refineries. This strategy is intended to accelerate the replacement of fossil oil and gas-derived fuels and chemicals with those refined from biomass. "ARCO/Murray, with $6.8 billion in revenue in 2023 and a track record of completing 5,500 projects, is ideally sized for managing construction," he stated.

Lee Stellakis, Chief Operating Officer at ARCO/Murray, views the partnership's investment as holding substantial growth potential in green infrastructure construction, crucial for a sustainable future. He is particularly optimistic about the pivotal role that carbon-zero renewable fuels will play in revolutionizing transportation methods, including automobile and airline travel, by curbing atmospheric emissions.

The new partners have ambitious growth plans: aiming for 15 biomass refineries operational by 2030, scaling up to 150 by 2040, and reaching 500 by 2050. This expansion is projected to produce an annual total of 21 billion gallons of second-generation (2G) ethanol from agricultural residues such as stalks and straws, alongside perennial energy grasses like miscanthus. According to New Energy Blue's latest independent life-cycle analysis, these developments could have a profound impact: 500 refineries have the potential to prevent over 130 million tons of CO2 from entering the atmosphere annually, significantly mitigating the health impacts of climate extremes.

In 2019, New Energy Blue acquired exclusive rights to its Inbicon technology from Ørsted, Denmark's largest energy company. "Our team was deeply involved in proving and promoting the original conversion technology, and back in 2010, we built our first biomass refinery in Kalundborg, Denmark," explained Corle. "Today, the facility is owned and operated by Meliora Bio, continuing to convert Danish wheat straw into second-generation ethanol and various coproducts."

New Energy Blue has continually refined its processes over time. To ensure reliable implementation of its designs, the company relies on established partnerships with trusted suppliers, including two European specialists: Processbio for its automated bale-handling system at the front-end and Valmet for the thermal reactors used in biomass processing. These reactors play a crucial role in breaking down biomass, releasing cellulosic sugars, and extracting clean lignin, the structural component of corn stalks. The cellulosic sugars are fermented into second-generation ethanol for automotive fuel or further converted into biochemicals. The extracted lignin finds application in producing polymers and binders, offering sustainable alternatives for road construction and replacing conventional oil and gas-derived materials in eco-friendly products like polyesters, polyurethanes, and resins.