Thursday, May 5, 2011

Joule leases New Mexico land for renewable fuel

By Kyle Alspach

Joule Unlimited Inc. will have access to 1,200 acres in New Mexico for production of renewable diesel and ethanol, the first such agreement for the company and a major step toward commercializing the company’s unique process, Joule announced Thursday.

The Cambridge-based company said it has developed a method for creating the renewable fuels without the need for biomass, using sunlight, waste carbon dioxide, water and specialty microorganisms.

Joule said it has signed a lease agreement providing access to the acreage in Lea County, New Mexico, with the potential to scale the project up to 5,000 acres.

The company has dubbed its process “helioculture,” which centers on solar converter systems that can be set up in rows on any type of open land, including non-agricultural land.

Joule said it may be able to receive $19 million in incentives from New Mexico to facilitate operations at commercial scale. The company said Lea County met its requirements for production, including high solar insolation, access to non-potable water and waste carbon dioxide.

One acre of solar converter systems could produce 15,000 gallons of diesel per year at a cost of $30 a barrel, or 25,000 gallons of ethanol per year at $50 a barrel, CEO Bill Sims said previously.

Joule didn’t specify in the announcement when production in New Mexico is expected to begin.