HOUSTON (ICIS)--Fertilizer producer BioNitrogen announced on Monday it has signed a long-term biomass supply agreement with BioResource Management (BRM) for its first plant in Florida.
In a statement, company officials said BioNitrogen signed a 25-year agreement with BRM to provide biomass feasibility studies for future plants as well as consulting services regarding design optimisation of the biomass delivery process and wood yard configuration.
The company also signed a 25-year agreement with BRM to provide biomass supply services to the initial plant in Florida, which specifies the delivery of approximately 350,000 tons (318,000 tonnes) of biomass annually. BRM will manage the biomass supply chain, delivery logistics, scheduling, quality and billing services.
The biomass is transformed into urea through a gasification technology process and catalytic conversion.
In early February, the company announced it had completed the feasibility study for biomass feedstock supply, which has resulted in an estimated potential annual feedstock savings of approximately $1m for its Florida facility.
The company said the savings were roughly 11% more than the producer had estimated for the $175m urea plant to be located in in Hardee County, Florida. Once the plant is fully operational, BioNitrogen has projected that the facility’s output will result in 179,400 tons per year of urea.