A UK-based company which uses a process for converting waste biomass into fuel ethanol has signed a $500m (£319m) contract with a US firm.
Surrey-based TMO Renewables, which has developed a technology that uses a speciality bio-organism to convert waste feedstock into fuel ethanol, has entered into the contract with US company Fiberight to build waste to bioethanol plants in America.
Under the terms of the agreement, it is anticipated that 15 plants will be designed and constructed across the US within the next five years. For each plant that is built, TMO will receive an initial, one-off design fee plus recurring annual revenue.
The site and funding for the first plant has already been secured and construction is expected to begin in 2011.
TMO has already achieved project yields in excess of 9- US gallons per tonne (dry weight) at pilot scale by processing municipal solid waste (MSW) feedstock from Fiberight at its UK-based demonstration facility.
Fiberight chief executive Craig Stuart-Paul said: “Integrating TMO’s process with our own will give Fiberight the edge compared with other ethanol producing technologies, allowing us to be more efficient with waste than our competitors.”
TMO chief executive Hamish Curran added: “This contract is a landmark in the development of TMO’s technology on a commercial scale to produce an economically sustainable source of renewable biofuel.”