INEOS advances bioethanol plans in UK, US

Newcastle,UK / Chicago, Illinois -  INEOS Bio has started a feasibility study for a plant to convert locally generated biodegradable household and commercial wastes into carbon neutral road transport fuel and clean electricity, using the INEOS Bio technology process. The findings will inform an investment decision in 2010 for the construction of the initial commercial phase of a bio-ethanol plant at Seal Sands in the Tees Valley, and a fully integrated bio-refinery by 2015.

The £3.5-million feasibility study, which includes detailed engineering design work for a plant at the company’s Seal Sands site, is being supported by a £2.2-million grant from the Regional Development Agency One North East and the Department for Energy and Climate Change. 

Making the announcement, Peter Williams, CEO of INEOS Bio, said: "Converting household organic wastes into bio-fuel and clean energy can deliver very attractive environmental and social benefits to the North East and the UK as a whole. Essentially, our aim is to provide biofuel for cars and bio-energy at competitive cost without harming the environment, with very low or zero net carbon emissions and without competing with food production."

“The challenge now, in the current economic environment, is to commercialise in Europe. In this regard, I would like to express my thanks to One North East, the Department for Energy and Climate Change and the National Non-Food Crop Centre for their considerable support to enable this work to go ahead.”

The INEOS Bio process is a combined thermochemical and biochemical technology for the production of bio-ethanol and renewable power from a wide range of low-cost carbon materials, including biodegradable household and industrial wastes. At the heart of the INEOS Bio technology is an anaerobic fermentation step, through which naturally occurring bacteria convert gases derived directly from biomass into bio-ethanol. The process supports high recycling and high landfill diversion rates.

Alan Clarke, chief executive of One North East, said: "This project offers a very exciting opportunity in the process industries in the Tees Valley, which continues the positive theme of recent investments in this important sector. Biotechnology and biofuels are central to the low carbon future of the process industries. This development will be one of the first full-scale demonstrations of these new technologies and will further strengthen the region’s position at the forefront of industrial biotechnology."

Meanwhile, INEOS Bio has announced that it has selected KBR as its engineering contractor to develop the front end engineering & design (FEED) for the first of its advanced bio-energy plants.

At the recent Platts fourth Annual Cellulosic Ethanol Conference, INEOS Bio chief operating officer Mark Niederschulte highlighted the cost and sustainability benefits of the INEOS Bio technology for converting low cost carbon materials, including waste, into bioethanol and renewable energy. He said that work on the commercial design commenced in 3Q 2008 and is already well advanced. The Front End Engineering Design work is scheduled to be completed in 1Q 2010, with first commercial production expected by end 2011.

"We chose KBR to work with us in the engineering design phase of our technology because of their extensive process design and engineering expertise, including commercialization of new technologies, and a proven track record of successful Engineering Procurement Construction (EPC) projects worldwide,"  said Niederschulte.

John Quinn, president, KBR Downstream, added: "We see great potential for this new sustainable technology for producing renewable biofuels. KBR looks forward to applying our engineering and design expertise in the growing renewable energy market and to strengthening our relationship with INEOS Bio."