Biofuels, Wood Drive $3.2 Billion in U.S. Alternative Fuels Kickoffs in First Quarter

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Researched by Industrial Info Resources (Sugar Land, Texas)--U.S. annual energy consumption from renewable sources in 2019 outpaced coal-fired generation for the first time in more than 130 years, according to the U.S. Energy Information Administration (EIA), with the Alternative Fuels Industry playing a major role. Coal still led renewables in electricity generation for the power grid, but biofuels, wood and other sources accounted for most of the generation in other energy-consuming sectors. Industrial Info is tracking $3.2 billion worth of alternative-fuel projects in the U.S. that currently are set to begin construction in the first quarter of 2021.

The groundswell behind the alternative-fuel market is staging a comeback for the world's oldest fuel source: wood. The main source of U.S. energy until the mid-1800s, wood quickly gave way to coal, which dominated the domestic energy market until it was surpassed by natural gas in the previous decade. Although wind and solar account for the bulk of electric generation for the power grid, wood is the main renewable source for energy privately generated in the U.S. industrial sector, according to the EIA. Wood also narrowly edges out solar as the most common renewable source used in private residential and commercial generation.

Click on the image at right for an EIA graph comparing the U.S. consumption of energy generated by coal and renewable sources, by sector.

Enviva LP (Bethesda, Maryland) is preparing to begin construction on a pair of wood fuel pellet-manufacturing plants in Alabama and Mississippi. Site preparation for the estimated $140 million plant in Lucedale, Mississippi, began in late 2019 following years of planning, only to face further slowdowns months later when COVID-19 began to spread. Nonetheless, the plant is expected to begin producing 500,000 metric tons per year of custom pellets for export in second-quarter 2022.

Enviva's estimated $175 million plant in Epes, Alabama, which is designed to produce 700,000 metric tons per year, received a boost in September when Alabama Governor Kay Ivey awarded a $750,000 grant to the Sumter County Commission, which will use funds to improve infrastructure for the plant. For more information, see Industrial Info's reports on Enviva's Mississippi and Alabama projects.

Two other fuel pellet plants are in development in North Carolina: Active Energy Group plc's (London, England) estimated $30 million plant in Lumberton, which is designed to process forest and industrial waste into five tons per hour of biomass fuel pellets, and Nature's Earth Pellet Energy LLC's estimated $19.5 million plant expansion in Laurinburg, which will boost capacity and allow for new products such as wood fibers and shavings. For more information, see Industrial Info's reports on the Lumberton and Laurinburg projects.

Renewable jet fuel is quickly gaining support in the Alternative Fuels Industry, and the relatively new idea is taking shape with LanzaTech Incorporated's (Skokie, Illinois) estimated $40 million demonstration plant for sustainable aviation fuel and renewable diesel in Soperton, Georgia, at the company's existing Freedom Pines Biorefinery. LanzaTech plans to process ethanol feedstock into 10 million gallons per year of "green" jet fuel, and earlier this year formed subsidiary LanzaJet with $15 million in funding from Suncor Energy Incorporated (NYSE:SU) (Calgary, Alberta) and $10 million from Mitsui & Company Limited (Tokyo, Japan). For more information, see Industrial Info's project report.

LanzaTech's plans coincide with an energized outlook in the jet fuel market, where welcome news about COVID-19 vaccines is brightening the outlook for air cargo and commercial travel. All Nippon Airways, Japan's largest airline, is among the other companies financially backing LanzaTech's plans.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.