Ensyn Fuels will provide the hospital with approximately 250,000 gallons/year of RFO for a renewable term of seven years, commencing deliveries by April 2015. This contract will allow Valley Regional to convert its entire heating requirements from petroleum fuels to Ensyn’s renewable fuel, lowering the hospital’s greenhouse gases from heating fuels by approximately 85% and reducing the hospital’s operating cost.
Ensyn’s RFO™ is a liquid fuel produced from non-food solid biomass including forest and mill residues. RFO™, essentially “liquid wood,” directly displaces petroleum fuels in heating operations and is also a renewable feedstock for refineries for the production of gasoline and diesel.
Initial deliveries of RFO™ will be sourced from Ensyn’s production facility in Ontario. This plant has been qualified by the US Environmental Protection Agency (EPA) under the US Renewable Fuel Standards (RFS2) program. Ensyn expects that sales of RFO from this facility to Valley Regional will qualify for Renewable Identification Numbers (RINs) under the RFS2 program, enhancing contract economics.
The contract with Valley Regional is the second long term supply contract Ensyn Fuels has signed committing RFO from Ensyn’s expanding production capacity and also the second supply contract to be signed with a hospital.
