SG Preston and IHI E&C to build biofuels plants in US, Canada
SG Preston has reached an agreement with IHI E&C, US engineering, procurement and construction (EPC) unit of Japanese conglomerate IHI, to develop and build advanced biofuels manufacturing plants in the Midwestern US and Canada.
The plants will produce renewable diesel and jet fuel by employing proven and commercial scale technologies.
Each facility will be capable of producing close to 120 million gallons of renewable diesel and jet fuel annually.
The volume-based, competitively priced biofuels produced will be sold in the US and global industries.
As part of the partnership, IHI E&C will serve as turnkey EPC to SG Preston's biofuels initiative, delivering "lump sum," fixed price engineering and construction.
SG Preston president and CEO R. Delbert LeTang said: "IHI E&C is a perfect fit for our US and global strategic vision.
"The need to drive thought leadership and momentum toward tangible solutions in the U.S. alternative energy market has become a strategic imperative that we intend to lead in alliance with global blue chip partners in engineering and construction, technology and manufacturing."
SG Preston will use its biofuels strategy initially at five plants in South Point and Van Wert Ohio, Logansport, Indiana, with plans to use at two additional sites, one in Michigan, and one in Ontario, Canada.
The new facilities are being developed in response to certain social and market forces, including tighter regulation of carbon-emitting industries, worldwide demand for growth in clean fuels, and a growing need to reduce CO2 emissions and reduce the amount of waste produced.