Range Fuels to build first wood-based ethanol plant in Georgia
| Wednesday, February 7, 2007 |
Contact: Office of Communications 404-651-7774 Tim Turpin, OutCast Communications (415) 392-8282 |
Almost 70 new jobs expected at Treutlen County facility
ATLANTA – Governor Sonny Perdue announced today that Range Fuels, Inc., a Colorado-based cellulosic ethanol company, will build Georgia’s first wood-based cellulosic ethanol plant in Treutlen County. Governor Perdue made the announcement this morning at the Georgia Agribusiness Council’s annual State Legislative Breakfast.
“Today’s announcement is not only great news for Range Fuels and Treutlen County, but also our state’s forestry industry and Georgia’s continued push to encourage bio-fuels developed from home-grown products,” said Governor Perdue. “Georgia will be a national leader in cellulosic ethanol, and Range Fuel’s investments here will be a major step forward helping us address our state’s long-term energy issues.”
Funded by Khosla Ventures, based in Menlo Park, California, Range Fuels estimates that this plant, combined with others to follow, will have the capacity to produce over 1 billion gallons of ethanol per year. The company’s first plant will create approximately 69 new jobs for the area.
The announcement marks another major milestone for Georgia's broad-reaching conservation and stewardship of its natural resources. Wood waste from the state’s millions of acres of indigenous Georgia pine trees will be the main source of biomass for the ethanol production. Just two weeks ago, Governor Perdue introduced legislation that would exempt sales taxes on the purchase of materials and equipment used in the construction of biofuel facilities in Georgia.
“The state of Georgia has provided us with an excellent opportunity to use its abundant renewable natural resources to help solve fuel issues for the country,” said Range Fuels CEO Mitch Mandich, who attended this morning’s announcement with Governor Perdue. “Thanks to Georgia’s environmentally sensitive stewardship of its forests for the past 50 years, Range Fuels can take what is traditionally considered a waste product, and turn it into a source of transportation fuel.”
While most domestic ethanol production requires corn as a feedstock, Range Fuels’ innovative and proprietary technology transforms otherwise useless products such as agricultural wastes, grasses, cornstalks and wood waste, as well as hog manure, municipal garbage, sawdust and paper pulp, into ethanol through a thermal conversion process. This technology will be proven on a commercial scale in Georgia.
“The production of cellulosic ethanol represents not only a step toward true energy diversity for the country, but a very cost-effective alternative to fossil fuels. It is advanced weaponry in the war on oil,” said Vinod Khosla, managing partner of Khosla Ventures, who recently told a Reuters Global Biofuels Summit that he could see cellulosic fuel prices sinking to $1 per gallon within 10 years.
“We look forward to working with the state of Georgia and will utilize their many workforce and job training initiatives to train and recruit our employees,” said Mandich. “Our company is focused upon green, renewable and sustainable energy which will lower greenhouse gases, promote energy independence, and create new jobs. Georgia, with its natural resources and shared values, provides the perfect partner for Range Fuels.”
About Range Fuels, Inc.
Range Fuels, Inc., [formerly Kergy, Inc.] is focused on green energy and the production of cellulosic ethanol. The company does not use food products like corn, but rather uses waste products and turns them to value. The company's innovative technology uses wood chips, municipal waste, paper pulp, olive pits, and more and converts those materials to ethanol. The company's system, named K2, uses a two step thermo-chemical conversion process. The first step converts the biomass to synthetic gas and the second step converts the gas to ethanol. The company's business model is to design, build, own and operate its plants. The company is private and funded by Khosla Ventures, LLC, arguably the top venture firm in the U.S. focusing on alternative, clean (green) energy systems. The leadership team melds experience from Silicon Valley's fast-paced, high-tech world, and the technologically intense coal, coal gasification, and gas-to-liquids industries. Range Fuels' vision is to introduce the world to a fuel that's renewable, sustainable, and eco-friendly in its production.
About Khosla Ventures
Khosla Ventures offers venture assistance, strategic advice and capital to entrepreneurs. The firm helps entrepreneurs extend the potential of the Internet to new markets such as mobile and supports breakthrough scientific work such as bio refineries. Vinod Khosla founded the firm in 2004. Vinod has been labeled the #1 VC by Forbes and Fortune recently labeled him as one of the nation's most influential ethanol advocates, noting "there are venture capitalists, and then there's Vinod Khosla." The firm's capital comes entirely from its own partners and a portion of all profits are donated to charitable causes, with an emphasis on micro-finance, education, and the environment. Khosla Ventures is based in Menlo Park, California.