July 19, 2007
FPL Energy enters into agreement with Citrus Energy for first of its kind ethanol plant
JUNO BEACH, Fla. — FPL Energy, LLC, a subsidiary of FPL Group (NYSE:FPL), today announced that it has signed a letter of intent with Citrus Energy, LLC, of Boca Raton, FL, to develop the first ever commercial scale citrus peel to ethanol plant.
The cellulosic ethanol plant will be owned and operated by FPL Energy and is expected to produce four million gallons of ethanol per year. It will be located on the grounds of a local Florida citrus processor.
“FPL Energy is delighted to be working with Citrus Energy on this exciting new project to produce a clean, affordable, and domestically-produced biofuel utilizing Florida’s existing citrus industry infrastructure and bringing new jobs to rural communities,” said Mike O’Sullivan, senior vice president of development for FPL Energy.
“Citrus Energy’s mission is to develop fuel ethanol that minimizes environmental impact and cost by using citrus waste and other biomass. FPL Energy, as the largest renewable energy generator in the U.S., is the ideal partner,” said David Stewart, president of Citrus Energy.
FPL Energy said that ethanol from citrus peel could result in a new Florida industry producing over 60 million gallons of fuel per year, which could replace about one percent of Florida’s annual gasoline consumption.
FPL Energy is a leading competitive energy supplier utilizing clean fuels such as natural gas, wind, solar, hydroelectric and nuclear to generate electricity. It is the nation’s leader in wind energy with 49 wind facilities in operation in 15 states. It is a subsidiary of FPL Group, (NYSE: FPL) one of the nation’s largest providers of electricity-related services with annual revenues of nearly $16 billion. FPL Group’s principal subsidiary is Florida Power & Light Company, one of the nation’s largest electric utilities, serving 4.4 million customer accounts in Florida. Additional information is available at http://www.FPLEnergy.com, http://www.FPLGroup.com and http://www.FPL.com.
Citrus Energy, LLC is based in Florida and will include plant locations at several of the Citrus processors locations.
Citrus waste feedstock is an agricultural residue available at no cost and supplied on a continuous basis for 8 months with no transportation costs.
Company formed as a Florida LLC in 2006 to commercialize technology developed by the USDA Citrus Laboratory in the 1990’s.
Use the available steam generation capacity, utility infrastructure, existing environmental permits and existing feedmill to reduce the capital cost of ethanol plants.
Lower cost to produce ethanol than corn.
Cellulosic ethanol will have large benefits from grants and reverse auction in 2005 energy bill.
Profitable business which can fund development of additional feedstocks to expand business in potentially multi-billion dollar cellulosic ethanol opportunity. Four month off season for new feedstock trials.
Florida has tens of thousands of acres of phosphate mined lands that are not suitable for food agriculture. Huge opportunity to grow subsidized energy crops.
Advantages of co-locating are:
The financial and energy costs of feedstock growing, harvesting, processing, and collection are carried by the primary products (citrus juices).
Turns citrus waste from an industry liability to an asset; supports the future of one of Florida’s key industries.
Existing energy infrastructure.
Existing water, air, and hazardous material permits.
Advantages of our technology are:
Feedstock is available at the plant at no cost with no transportation costs.
Feedstock is processed immediately with no requirement for storage.
This cellulosic process is commercially viable in the short term.
No toxins produced.
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