New Mexico utility seeks biofuels as part of renewables portfolio expansion

July 23, 2008

In New Mexico, the Public Service Company of New Mexico (PNM) has issued an RFP to expand the use of renewable energy in its portfolio of energy sources, including biofuels. PNM is required under state law to generate 6 percent of its power from renewable sources, increasing to 20 percent in 2020, and seeks to diversify its source mix with additional solar, wind, geothermal and biomass sources. The company said that it hopes to offset natural gas prices by switching to biofuels, and said that it seeks renewable resources that will be available no later than 2011.

New Mexico background

The Center for Excellence for Hazardous Materials Management in Carlsbad said that it is less than two years from a major algae oil production demonstration using five strains of algae that have been undergoing research at the center since 2006. The researchers have focused on brine-based algae because of their ability to thrive in salty water and other conditions unsuitable for cultivation of other food crops. The team believes that they can achieve production of up to 8,000 gallons per acre.

Earlier this year, construction has halted on the 15 Mgy Clovis Biodiesel project due to financing issues. The $18 million plant was 80 percent complete and scheduled to be finished this month, but management now says that completion is six to eight months away. Project owners Ares Blue Sun blamed the run-up on soy prices and Blue Sun’s inability to close a public offering for the delay.

Previously, ConAgra announced that it was canceling its proposed 100 Mgy corn ethanol project in Clovis due to depressed economic conditions and rising building costs. The $200 million project also ran into resident opposition because the plant site bordered the town.

The ConAgra plant had been scheduled for an additional hearing by the state Environmental Improvement Board. The Environment Department previously approved the plant, but local residents objected to the location of the plant on the edge of town. The EIB ordered the hearing after it was disclosed that notices to residents did not properly disclose the distance from the plant to the town limits. The additional hearing will be held before February.

American Renewable Fuels plans to construct a 75 Mgy biodiesel facility in Clovis Industrial Park, which would commence operation in September 2009. Abengoa operates a 27 Mgy corn ethanol facility in the area which last year it put up for sale, saying it wanted to concentrate on its larger facilities and cellulosic ethanol developments.

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Written by Jim Lane · Filed Under Producer News