Ensyn, Youngstown Thermal sign RFO biofuel supply agreement

By Ensyn Fuels Inc. | June 08, 2015

Ensyn Fuels Inc., a wholly owned subsidiary of Ensyn Corp., has signed a contract with Youngstown Thermal LLC for the supply of RFO, Ensyn's advanced cellulosic biofuel. Ensyn Fuels is to provide Youngstown Thermal up to 2.5 million gallons of RFO per year, with deliveries to begin as soon as the fourth quarter of 2015, in time for the 2015-2016 winter season. Youngstown Thermal will use the RFO to displace up to 50 percent of its fuel needs in their natural gas fueled boiler. This five-year contract follows a series of successful RFO combustion demonstrations carried out at Youngstown Thermal in 2014.

Youngstown Thermal is the owner and operator of the steam distribution system in Youngstown, Ohio. Youngstown Thermal provides steam for heat and hot water for the central business district of Youngstown including the Youngstown State University. Youngstown Thermal owns and operates four boilers at the site.

Ensyn's RFO is a liquid fuel produced from non-food solid biomass including forest and mill residues. RFO, essentially "liquid wood", displaces petroleum fuels in heating operations and is also a renewable feedstock for refineries for the production of spec gasoline and diesel.

Ensyn Fuels' initial deliveries of RFO are expected to be produced at Ensyn's 3 million gallon/year facility in Ontario, with eventual supply from the Ontario facility and/or one of several new projects Ensyn and its partners are developing in Eastern Canada/Eastern US. Ensyn's Ontario facility has been qualified by the U.S. EPA under the renewable fuel standards (RFS) program. Ensyn expects that sales of RFO to Youngstown Thermal will qualify for renewable identification numbers (RINs) under the RFS2 program.

This initiative represents the first commercial use of Ensyn's RFO in a district heating system and demonstrates Youngstown Thermal's leadership in innovative district heating solutions. This contract will anchor Youngstown Thermal's commitment to transition its fuel requirements from fossil fuels to renewable energy sources. The RFO supply contract will allow the company to reduce greenhouse gas emissions and produce and sell heating services with enhanced sustainability characteristics. Youngstown Thermal will be able to achieve all of this this while also generating cash savings.

"We welcome Youngstown Thermal as our first district heating client for RFO heating oil," said Robert Graham, CEO and chairman of Ensyn. "We look forward to helping Youngstown Thermal achieve their goals in greenhouse gas reduction and the supply of sustainable energy to the city of Youngstown."

"We look forward to integrating RFO heating oil into our energy mix," said Carl Avers, CEO and chairman at Youngstown Thermal. "We believe Ensyn's RFO is the right fuel for us and will help us make material progress toward our sustainability goals."

Ensyn Fuels will provide Youngstown Thermal with dedicated on-site storage for the RFO and an RFO delivery system, including a new burner.

The contract with Youngstown Thermal is the third long-term supply contract Ensyn has signed committing RFO from Ensyn's expanding production capacity and the first supply contract to be signed for district heating. In 2014 Ensyn Fuels signed renewable long-term contracts with Memorial Hospital and Valley Regional Hospital, both of New Hampshire, for the supply of RFO for heating purposes. Deliveries to Memorial Hospital commenced in August 2014 and continued throughout the 2014-2015 record cold winter, allowing Memorial to switch 100 percent of its heating needs from petroleum fuels to RFO.

Ensyn companies have been operating commercially for over 25 years and their RTP technology has produced over 40 million gallons of heating fuels and specialty chemicals from wood residues. Ensyn is now expanding production capacity with a focus on fuels for heating and refinery coprocessing. A 20 million gallon/year project is under development in Aracruz, Brazil by Ensyn and Fibria Celulose SA, Ensyn's partner for RFO production in Brazil.