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MAY 2007

Partnership for renewable energy created

Diversified Energy Corporation and Evergreen Pulp, Inc have formed a partnership and submitted a proposal to pursue a renewable project being funded by the state of California.

The Public Interest Energy Research Natural Gas (PIER-NG) Program, a part of the California Energy Commission, is seeking research, development, and demonstration of technologies capable of replacing natural gas usage with renewable resources. The focus of the state solicitation is on biomass-to-gas and/or hybrid projects.

Diversified Energy Corporation is the prime contractor for the program, providing program management and the gasification technology to be demonstrated. Evergreen Pulp is acting as the host for the project at their kraft pulp mill in Eureka, California.

Diversified Energy will be introducing a gasification technology called HydroMax®. The gasification approach is based on a proven molten-metals reactor technology. It offers several critical advantages to industrial-scale customers such as Evergreen Pulp, including a compact size for simple integration, biomass feedstock flexibility, synthetic gas (syngas) output variability, and attractive economics. Previous technology development has included several bench-scale tests and extensive analyses and modeling.

The proposed project will place a single demonstration-scale reactor at the Evergreen Pulp mill. The reactor will gasify low-value excess wood fines to create syngas. This syngas will be pumped into the burners of a process heating facility to offset the natural gas currently being used.

The two companies have also discussed activities beyond the initial PIER-NG demonstration. This broader relationship could include installation of a full-scale HydroMax® system capable of generating enough high-Btu syngas to replace all of the natural gas consumed at the Eureka, California plant. This would make Evergreen Pulp the first pulp mill in the United States to run its operations entirely fossil-fuel free.

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