KiOR fueling up plans?

Published 12:06 am Saturday, June 2, 2012

“This is a breakthrough technology that favors rural economies and areas. All our plants are going to be built in a Columbus, a Natchez, areas where agriculture is,” Cannon said.

One feedstock the company won’t use, however, is corn.

“I personally believe in the world, the top three things that we have to face globally are food, water and energy. We can’t just have available energy, it has to be relatively inexpensive energy,” Cannon said. “But to take food and make fuel is something that we don’t believe it is our place to do.”

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Past, present, future

KiOR opened its pilot plant in 2009, and the following year they scaled operations up 400 times at a demonstration unit. They plan to start operations at their recently-built Columbus plant this year, which should run at 50 times the operational capacity of the demonstration unit.

The Columbus facility’s products have already been contracted to three companies: Chevron, Huff Refining and FedEx, Cannon said.

Plans for the Columbus plant did not originally include a refinery, but the company later added one to the operation, he said.

The Natchez plant will be three times bigger than the Columbus facility, Cannon said, and engineering work should start in the first quarter of 2013.

“Our goal is to always be a good neighbor and work with the local community,” Cannon said. “We couldn’t be more pleased with the quality of people we found in Columbus. The local junior college there put on a training program for the people hired to be operators, and it has been a positive relationship.

Cannon and Chief Financial Officer John Karnes were happy with what they saw in Natchez, Cannon said, especially at the Belwood site.

“It’s a beautiful site, and we are really excited to be here,” Cannon said.

The infrastructure at the Natchez-Adams County Port was one of the big draws for the company during the site selection process.

“For us, the No. 1 thing is biomass (availability), and what are the logistical advantages?” Cannon said. “You have marine, rail and truck (access) — you have it all.”

Cannon said KiOR will largely utilize marine shipment out of the Natchez facility.