Spanish renewables and engineering group Abengoa has commenced construction on the biofuel refinery in Nevada, US.
The facility is said to be the first of its kind in the US to produce biofuels from Municipal Solid Waste (MSW) with gasification technology.
The Sierra BioFuels plant, which reached financial close, is being built in the Tahoe-Reno Industrial Center for US-based renewable fuel producer Fulcrum BioEnergy with an investment of $205m.
As part of a contract signed in 2015, Abengoa will be responsible the engineering, design, construction and commissioning of the Sierra BioFuels project.
The project will have capacity to convert municipal solid waste (MSW) into renewable syncrude, which will be upgraded to more than 10 million gallons of jet fuel annually. It is expected to process over 200,000 tons of garbage from the local landfill.
Abengoa said: “This initiative provides a sustainable alternative for the large amount of MSW that is produced in the area each year, and which otherwise would be disposed of at a landfill site.”
The EPC work on the project is planned to be completed in over two years.
Abengoa said it expects the project to strengthen its position both in North America and also in the sector of waste-to-energy projects.
The project will support the region with more than 500 jobs during the construction phase, and 100 jobs on commencing operations.
Abengoa noted it has worked on the preliminary engineering and procurement works for the project for over a year.