Industrial Biofuels Producer
Proprietary technology to begin blending biodiesel with traditional boiler fuel, heating oil and maritime fuel to meet local, state and Federal mandates, EPA and emissions standards for improved air quality.
The Company
Hunt BioSolutions, Inc. (Hunt), a wholly owned subsidiary of Hunt Global Resources, Inc., owns and operates a state of the art low pressure, low temperature, continuous batch, 20 million gallon biodiesel manufacturing plant. Due to its proprietary technology, the plant is being modified to produce industrial Biofuels for power generation, maritime fuel and heating oil, instead of biodiesel for transportation. Industrial Biofuels are less expensive to produce, and the plant's modification will result in doubling its production capacity to 40 million gallons annually. The plant is complete and prepared to be fully operational. Hunt acquired the plant, which in 2008 and early 2009 produced ASTM and European Specification quality product in material quantities. (ASTM is a world-trusted source for product standards). The plant, constructed in 2006-7, is located in the heart of the ship channel area and the oil and gas center of America, near Houston in Pasadena, Texas.
Product Definitions
The term "Industrial Biofuels" refers to heat, electricity and/or power generated from the combustion of biomass – meaning solids, liquids, and gases to be used for the production of energy. It is sometimes known as "bioheat". Heating Biofuel is available in various blends; up to 20% Biofuel is considered acceptable for use in existing furnaces without modification. In the company's case, "Industrial Biofuels" refers to meeting ASTM specifications as a mandated-compliant and environmentally friendly replacement for #2-#6 diesel fuel.
Bypassing the need for Biodiesel tax credits
The company is not focused on biomass to be used in transportation. While the biodiesel industry is barely functioning, waiting for Congress to finally renew the $1 federal excise tax credit, Hunt is focused on the U.S. industrial boiler sector, public power plants, as well as the stationary diesel, maritime and heating oil sectors. State-level renewable standards, along with the EPA's boiler regulations, are mandating that boilers and U.S. utilities begin the process of embracing Biofuels.
The substantial power generation market
Industrial Biofuels is positioned to become the next major player in renewable power generation – with a potential substantial impact. A recent study conducted by Norbridge, Inc., a management consulting firm, revealed that 25% of the utilities interviewed stated their interest in increasing the use of biomass fuel was a "10" on a 1 to 10 scale. Across all utilities, the median response was 7.5 out of 10. This level of interest, they reported, was driven by renewable energy standards as well as many utilities' limited ability to increase the use of hydro, wind and solar power. Fossil fueled power stations are major emitters of greenhouse gases (GHG).
The U.S. Energy Information Administration (EIA) expects Biofuels consumption for power generation to increase significantly. Not factoring in a potential national cap-and-trade initiative, EIA projects biomass-fueled power to increase from 60 billion kWh to 188 billion kWh by 2020.
Additional boiler inventory
There are 19,500 industrial boilers larger than 10 million Btu/hr., including more than 1,300 larger than 250 million Btu/hr. Five major industries are host to the majority of these larger boilers: food, paper, chemicals, refining and primary metals. Industrial boilers consume about 37% of all energy excluding electricity. These major industrial entities must now consider industrial Biofuels or the purchase of RINs or both.
Marine Applications: Ocean Vessels-Diesel Ships
The industry sector 'Vessel Bunkering' is defined as an energy-consuming sector that consists of commercial and private boats, such as oil company vessels. Industrial Biofuel is an obvious candidate for use in marine applications. Independent tests have found that biodiesel are non-toxic, readily biodegradable and essentially free of sulfur and aromatics. New marine diesel engines must meet increasingly stringent emissions requirements, yet these engines continue to emit significant amounts of nitrogen oxides (NOx) and particulate matter (PM), both of which contribute to serious public health problems. EPA is addressing emissions from marine engines in two ways, through their fuels and through their emission limits. The maritime industry is currently operating under mandates which require the use of Industrial Biofuels while operating anywhere within 250 miles of the U.S. coast.
