Fulcrum Bioenergy has given Abengoa the engineering, procurement and construction (EPC) contract of $200 million for the construction of its first biofuel plant at Sierra (Navada) US. The construction will start in the second half of this year and the plant is scheduled to become operational in the third quarter of 2017. This contract guarantees the schedule, startup and performance of the plant.
The plant will process 200,000 million tons of municipal solid waste into 10 million gallons of renewable jet fuel annually at the production cost of ~$1 dollar per gallon. To get the feedstock the Fulcrum has already made a 20 year long agreement with two large waste service provider companies Waste Management and Waste Connections. Another agreement for 10 years has been made with Cathay Pacific Airways for offtake of the fuel produced from the plant. The plant will have a biorefinery and a waste processing facility.
USDA awarded $105 million loan guarantee and US Department of Defense under its Defense Protection Act has awarded $70 million grant for to Fulcrum for Sierra project.