More than $620 Million in U.S. Alternative Fuels Projects Affected by COVID-19

Researched by Industrial Info Resources (Sugar Land, Texas)--Just as some petroleum refineries have idled capacity for economic reasons caused by low fuel demand, so have some U.S. alternative fuels producers, including ethanol and biodiesel producers that rely on mandatory fuel-blending requirements to move their product. As fuel use increases as more people return to work, so should alternative fuels production.

In addition, Industrial Info is tracking more than $620 million in U.S. alternative fuels capital and maintenance project activity that has been delayed, placed on hold or otherwise affected by the coronavirus pandemic.

A planned grassroot synthetic diesel refinery in Ontonagon, Michigan, in the Upper Peninsula on the shores of Lake Superior, is one of the largest U.S. alternative fuels projects affected by the pandemic. SynSel Energy Incorporated's (Elmhurst, Illinois) facility is to be built on a former pulp and paper site and will process 1,000 to 1,800 tons per day of wood into 90,000 gallons per day of synthetic diesel. Construction was originally planned to begin in the third quarter of this year, but this has now been pushed out to later in the year or perhaps early 2021 because of COVID-19. The project now is set to be completed in the first half of 2023. For more information, see Industrial Info's project report.

One of the major alternative fuels producers in the U.S., POET LLC (Sioux Falls, South Dakota), has halted construction on a grassroot fuel ethanol plant in Indiana until the pandemic lessens in severity. The company's planned plant in Shelbyville, located about 30 miles southeast of Indianapolis, will produce 80 million gallons of ethanol from corn feedstock when completed. Construction began in 2018 and was nearing completion when halted. While a completion date remains up in the air until the resumption of construction, Industrial Info expects this to happen in late summer. For more information, see Industrial Info's project report.

While the fuels used in people's automobile tanks tends to dominate alternative fuels coverage, the industry also includes other aspects such as wood-based fuel pellets. Pinnacle Renewable Energy Incorporated (Prince George, British Columbia) was gearing up to construct a grassroot fuel pellet production plant in Demopolis, Alabama, when the pandemic hit the U.S. Construction would include production buildings and pressing and packaging equipment to process wood fiber into 360,000 metric tons per year of wood fuel pellets. The timing of construction is now being reevaluated. For more information, see Industrial Info's project report.

Industrial Info is tracking more than 20 planned maintenance turnarounds at U.S. alternative fuels facilities that have been affected by the coronavirus. Click here for a list.

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