Fed-backed Ethanol Plant Sold; Taxpayers Lose Again

By:  Brian Koenig
01/06/2012
       
Fed-backed Ethanol Plant Sold; Taxpayers Lose Again

A failed southeast Georgia ethanol factory was sold Tuesday for pennies on the dollar after squandering tens of millions in federal and state tax dollars. Range Fuels, a bankrupt U.S. cellulosic ethanol company, sold its only factory, located in Soperton, Georgia, to LanzaTech, a biofuel company based in New Zealand.

Backed by California billionaire Vinod Khosla, who also bankrolled Range Fuels and lobbied for its federal loans, LanzaTech paid a meager $5.1 million for the deal — a tiny fraction of the financial support it received — and plans to convert the ethanol plant into a factory that will generate chemicals from biomass, in another effort to "transform" the alternative energy industry.

"We have been doing a lot of work on steel mill gases and other gases to ethanol mostly, but in the laboratory we have shown that we can make chemicals," LanzaTech CEO Jennifer Holmgren said Tuesday in a phone interview. "We don’t have any assets where we can control the feedstock that are large and are able to help us scale up." While the company plans to use the factory to produce biochemicals, it has partnerships in Asia that deal mainly with converting steel mill gases into ethanol, Holmgren added.

A failed southeast Georgia ethanol factory was sold Tuesday for pennies on the dollar after squandering tens of millions in federal and state tax dollars. Range Fuels, a bankrupt U.S. cellulosic ethanol company, sold its only factory, located in Soperton, Georgia, to LanzaTech, a biofuel company based in New Zealand.

Backed by California billionaire Vinod Khosla, who also bankrolled Range Fuels and lobbied for its federal loans, LanzaTech paid a meager $5.1 million for the deal — a tiny fraction of the financial support it received — and plans to convert the ethanol plant into a factory that will generate chemicals from biomass, in another effort to "transform" the alternative energy industry.

"We have been doing a lot of work on steel mill gases and other gases to ethanol mostly, but in the laboratory we have shown that we can make chemicals," LanzaTech CEO Jennifer Holmgren said Tuesday in a phone interview. "We don’t have any assets where we can control the feedstock that are large and are able to help us scale up." While the company plans to use the factory to produce biochemicals, it has partnerships in Asia that deal mainly with converting steel mill gases into ethanol, Holmgren added.

Click here to read the entire article.

The JBS Weekly Member Update offers activism tips, new educational tools, upcoming events, and JBS perspective. Every Monday this e-newsletter will keep you informed on current action projects and offer insight into news events you won't hear from the mainstream media.
JBS Facebook JBS Twitter JBS YouTube JBS RSS Feed