Fulcrum BioEnergy Inks Two Waste-for-ethanol Deals

By San Francisco Business Times

Fulcrum BioEnergy Inc., which is building a plant in Nevada to turn household waste into ethanol, said it made two deals with companies that will supply it with garbage.

Pleasanton-based Fulcrum made a 15-year deal with Waste Management of Nevada, which is a subsidiary of Houston-based Waste Management Inc. (NYSE: WM). This deal will supply Fulcrumâ¿¿s plant with municipal solid waste to be processed in the plant, outside Reno, when its starts operating late in 2012.

The second deal is with Waste Connections Inc. (NYSE: WCN) of Folsom for similar supplies of sorted household garbage.

Fulcrum didnâ¿¿t give financial details of either deal.

The companyâ¿¿s $120 million processing plant is being built by Irving, Texas-based Fluor Corp. (NYSE: FLR). Itâ¿¿s in McCarran, in Storey County, about 20 miles east of Reno.

Fulcrum hopes to produce 10.5 million gallons of ethanol a year from 90,000 tons of garbage at the plant when it gets going. The plant will also generate some electricity for its own operations and will produce the industrial solvent propanol.

The business is in talks with the Department of Energy over terms of loan guarantees to help pay for the plant.

James Macias is president and CEO of Fulcrum -- he worked in the past at Calpine Corp. (NYSE: CPN) and at PG&E (NYSE: PCG). James McDermott is Fulcrumâ¿¿s chairman.

Copyright 2011 American City Business Journals

http://www.bizjournals.com/sanfrancisco/news/2011/01/06/fulcrum-bioenergy-inks-two.html?ana=thestreet

Copyright bizjournals.com 2010

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