Range Fuels to build first wood cellulosic ethanol plant in Georgia
Potential to produce over 1 Billion Gallons a Year
BROOMFIELD, CO and PALO ALTO, CA – February 7, 2007 – Range Fuels, Inc., a cellulosic ethanol company, today announced it will build its first ethanol plant in Treutlen County, Georgia. Founded by Menlo Park, California-based Khosla Ventures, 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 first plant will create over 70 new jobs for the area.
The announcement marks another major milestone for the State of Georgia's broad-reaching conservation and stewardship of its natural resources. Wood waste from the state’s millions of acres of indigenous Georgia Pine will be the main source of biomass for the ethanol production.
“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 Mitch Mandich, Range Fuels CEO. “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.”
The company is at the forefront of new proprietary technology based on cellulosic ethanol. While most domestic ethanol production requires corn as a feedstock, Range Fuels' proprietary process does not. It also completely eliminates the use of enzymes, which have been an expensive component of traditional cellulosic ethanol production. Its innovative and proprietary technology transforms otherwise useless products such as wood chips, agricultural wastes, grasses, and cornstalks as well as hog manure, municipal garbage, sawdust and paper pulp into ethanol through a thermo-chemical conversion process. The company's system, K2, uses a two step process to convert biomass to a synthetic gas and from there, convert the gas to ethanol.
In addition to a broad range of biomass to select from, the K2 system is also modular. Depending upon the quantity and availability of feedstock, the K2 system can scale from entry level systems to large configurations. This range of system performance will allow the K2 to be placed near the biomass location reducing transportation costs, and will allow the most economical size system to be deployed.
“Today’s announcement is not only great news for Range Fuels, Inc. 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 Georgia Governor Sonny Perdue, who also announced plans for the plant today during the Georgia Agribusiness Council’s annual State Legislative Breakfast. “Georgia will be a national leader in cellulosic ethanol, and Range Fuels’ investments here will be a major step forward in helping us address our state’s long-term energy issues.”
“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 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.
Press Contacts:
Georgia Governor – Office of Communications
(404) 651-7774
Tim Turpin, OutCast Communications
(415) 392-8282