National Clean Fuels announced that the company signed a profit participation agreement with the Center for Environment, Commerce & Energy (The Center). The two organizations are working together closely to build a biomass-to-electricity (BTE) plant in Port Gibson, Miss.
According to the agreement, National Clean Fuels will provide the Center with monthly project support payments in exchange for a percentage of the net profits generated by the Port Gibson BTE plant once it becomes operational. The Center and National Clean Fuels signed a term sheet earlier this month.
Plans call for the new Port Gibson BTE plant to generate electricity by gasifying sawdust and woodchips to power a massive turbine. NACF inked a letter of intent with the City of Port Gibson in September to devise plans for biomass and solar-energy production in and around the municipality as well as other potential means of green energy production. The Center will assist with the planning and implementation of the project.
“It was crucial for us to get this agreement signed in order to continue moving forward with our Port Gibson project, so we are very pleased to have come to terms beneficial to both parties,” said Maurice Stone, President and Chairman of NACF. “We have already begun talks regarding potential projects for the future, so cementing National Clean Fuels’ relationship with the Center in this agreement was very important to us.”
The Center for Environment, Commerce & Energy is a private interest group that promotes and develops efficient use of natural resources and environmental safeguards. The company has the resources and expertise needed to implement alternative energy plans for future power production in the Port Gibson area. NACF and The Center are working to obtain an interconnection agreement with local providers, which would allow the BTE generation facility to redistribute energy along the Port Gibson-area power grid.
“NACF brings financing, expertise, and vision to the development of this project,” said Center President Norris McDonald. “It was important for both of our organizations to come to terms on this agreement so that we can proceed in getting the woodchip plant constructed for the people of Mississippi.”
Thanks in part to its natural abundance of woody biomass, the State of Mississippi has recently made increasing clean-fuel production and usage a priority. State lawmakers have authorized $51 million in new incentives to help bring three biofuel plants to the state. These incentives, along with an existing $30 million loan from the state, add up to an $81 million incentive package.
National Clean Fuels is dedicated to developing cleaner alternatives to fossil fuels. The company commercializes clean energy technology in a sector that is growing to compete in the energy industry, which contains the Sasol Ltd., Hess Corporation, Imperial Oil and Marathon Oil.