BioJet and US Indian Tribes to develop jet biofuel feedstock and refining projects worth $1 billion over 10 years
BioJet International has formed a business alliance with the Council of Energy Resource Tribes (CERT)., which represents 57 sovereign Indian Tribes that manage millions of acres of agricultural lands in the United States on which feedstocks for biofuels may be grown. BioJet last year received $1.2 billion in funding from Equity Partners Fund, to invest and make strategic acquisitions over 10 years. CERT manages 56 millions of acres of agricultural land of which BioJet will use about 1 million acres to grow feedstock, using these funds to do so. A Memorandum of Agreement is expected to be concluded within the next two months to define the participation terms of the two sides. CERT tribal lands are supported by financial incentives, so they are exempt in varying degrees from state and local taxation as well as permitting and licensing requirements.
Fri 27 Jan 2012 (Green Air online)
Renewable aviation biofuel supply chain integrator BioJet International has formed a business alliance with the Council of Energy Resource Tribes (CERT), which represents 57 sovereign Indian Tribes that manage millions of acres of agricultural lands in the United States on which feedstocks for biofuels may be grown.
A year ago, BioJet received a $1.2 billion facility from Equity Partners Fund, which is intended to help finance a $6 billion supply chain capital projects programme over the next 10 years that includes feedstock and refining projects, as well as investment and strategic acquisitions.
BioJet CEO Mitch Hawkins said its relationship with CERT envisioned joint projects worth at least $1 billion over 10 years locating feedstock generation and refining operations to provide biofuels for airlines and ground transportation at key locations throughout the western United States.
CERT Executive Director David Lester said: “We believe our sovereign Tribal members together with BioJet are well suited to lead one of the largest economic transitions in history: the transition from a fossil-based to a biofuel-based transportation sector and, on a larger scale, the transition to building a foundation for sustainable Tribal communities and an infrastructure for US energy independence.”
CERT will be represented in the effort by Robert Martin, former National Ombudsman of the US Environmental Protection Agency (EPA). A Memorandum of Agreement is expected to be concluded within the next two months to define the participation terms of the two sides.
Under the direction of the elected leadership of the Tribes, CERT has been instrumental in restructuring the federal-Indian relationship with respect to minerals, mining, taxation and Tribal jurisdiction over environmental regulation on Indian lands.
In addition to agricultural land, CERT members collectively own and manage more than 30% of the coal west of the Mississippi, 40% of domestic uranium and 10% of known national oil and gas reserves in the United States.
Through its energy forums and Indian Energy Solutions conferences, CERT helps build understanding between Tribal interests and those of the companies operating within Tribal jurisdiction or doing business with Tribes.
BioJet says its activities span the entire biofuel chain including the generation of feedstock, technology, refining, logistics, sustainability certification, distribution and eventual use by the aviation sector worldwide. Through its subsidiaries, BioJet adds that it owns and controls multiple, large biofuel feedstock projects around the world.
To coincide with the ASTM approval of bio-derived jet fuel for commercial use in July last year, BioJet made a one-time introductory offer to the commercial aviation industry of fixed-price contracts pegging the price of its jet biofuel to $2.97 per gallon. [http://www.iata.org/whatwedo/economics/fuel_monitor/Pages/index.aspx at present the price of aviation kerosene – IATA – is around $3.05 per gallon] . It said it was in a position to release one billion gallons of renewable jet fuel on long-term contracts. [Biojet says: The world’s annual consumption of jet fuel (excluding military) is about 2 billion barrels per year. ].
The company was the first to become an Alternative Fuels Strategic Partner of IATA and is also a member of the Roundtable on Sustainable Biofuels.
CERT and BioJet join forces for biofuels development
11 January 2012 (Biofuels International)
The Council of Energy Resource Tribes (CERT), a group made up of 57 Indian tribes, has formed a business relationship with renewable jet fuel supplier BioJet International.
The CERT members, who own and manage coal, uranium, oil and gas reserves throughout the US, will work with BioJet to capitalise on supply chain projects relating to feedstock and refining projects.
Mitch Hawkins, CEO of BioJet, says: ‘CERT is working through Tartoosh and BioJet to create project opportunities, raise capital and commercialise innovative biofuels technologies with an eye towards the creation of sustainable economic development within Indian country.’
BioJet last year received $1.2 billion (€940 million) in funding to invest and make strategic acquisitions. CERT manages 56 millions of acres of agricultural land of which BioJet will use about one million acres to grow feedstock, using these funds to do so.
David Lester, CERT executive director, says: ‘This effort will be led for CERT by Robert Martin, former National Ombudsman of the US Environmental Protection Agency in Washington DC, as leader of the RES Alliance with which BioJet is a strategic partner. We are poised for a long transition period wherein biofuels gain large market share not only from fossil fuels but also from ethanol.’
Hawkins adds: ‘We envision the scope of our business relationship broadly with CERT to include at least $1 billion worth of joint projects over a ten year period locating feedstock generation and refining operations to provide biofuels for commercial airlines and ground transportation at key locations throughout the western US.’
CERT and BioJet are expected to finalise a Memorandum of Agreement within the next two months which will define the terms of their participation.
‘BioJet and CERT will work together to develop feedstock resources both on tribal lands and also natural gas resources owned by the tribes. The parties will also work together on development of biofuel refining facilities on tribal lands. They will also coordinate on bioenergy related technology development and, in fact, are already doing so on at least one project,’ says Hawkins.
He goes on to explain that the most important aspect of any bioenergy project is the capital required to support it: ‘In this regard, the finance aspects of the relationship are unique in the US.’
He says CERT tribal lands are supported by financial incentives which mean they are exempt in varying degrees from state and local taxation as well as permitting and licensing requirements.
This serves to reduce transactional costs for any funded project and Indian tribes may issue general revenue bonds under the Tribal Tax Status Act and Tribal Economic Development Bonds under the American Recovery and Reinvestment Act, as well as being eligible for federal debt financing.