The Sustainable Chemistry Alliance has approved its first major project, providing $500,000 in funding for Azule Fuel. The funds are specifically designated to provide operational support for commercialization of Azule's biodiesel fuel production. With headquarters at the London, Ontario Campus of the University of Western Ontario Research Park, Azule is working towards startup of its first market development plant in the former Lanxess Pilot Plant in Sarnia, ON.
Azule CEO Jose Laurentino says the company is working towards developing large-scale biodiesel refineries in Canada using the most advanced and proven next-generation technology. "Utilizing local feedstocks like animal fats, waste oils and crude vegetable oils, we are positioning to meet the Canadian mandates for biodiesel set for 2012 in a remarkably economical and environmentally friendly way." In addition to the SCA funding, Azule is currently seeking an additional $3.5 million in government funding and private equity to finance the installation and startup of its first commercial plant this year in Sarnia. Process design work is already underway.
Laurentino says Azule holds a Canadian license from the U.S. company Benefuel Inc. for Ensel, "the only commercially viable, next-generation solid catalyst biodiesel refining technology." He adds that this provides a competitive and sustainable advantage in the Canadian marketplace, and will ensure a consistently higher quality product over conventional liquid catalyst technology. "Unlike conventional biodiesel processors, we will have access to a much broader array of low-cost, renewable feedstocks. This will insulate Azule from price spikes and dependencies on food grade oils."
Azule is focused on initially producing a few thousand litres of biodiesel at the Sarnia plant, ultimately ramping up to 400 million litres of biodiesel for the Canadian economy to meet the mandates set for biodiesel use in diesel fuel and home heating oil by 2012. Following the trial plant startup in Sarnia, Azule is planning to develop sites across Canada where it will build production facilities. These will be strategically located next to some of Canada's largest markets and where feedstock access is abundant.
Laurentino says Azule's business model offers advantages in the key areas of feedstocks, logistics and technology. It allows for processing of feedstocks that other conventional processors cannot and eliminates the typical caustic by-products that would be generated by a liquid catalyst facility. In addition, the strategy of locating refineries near the source of inputs and blending creates a more efficient way of producing and consuming fuel and lowers the overall carbon footprint of fuel production. This develops regional energy independence, alleviates the dependency on foreign oil and makes use of locally available waste products and agriculture capabilities.
"With this first major project approved for funding, this is an important and exciting step for the SCA ," says President and CEO Murray McLaughlin. SCA board of directors co-chairs Steve Bolt and Bernard West serve as members of the advisory board for Azule. Other projects are currently moving through the SCA approval process.
