On The Move
Agri-Tech Producers announces partnership with Cate Street Capital
Mar 3, 2010
COLUMBIA, SC - March 3, 2010 - Joseph J. James, President of Columbia, SC-based, Agri-Tech Producers, LLC (ATP) announced that his firm has entered into an exciting strategic partnership with Cate Street Capital, of Portsmouth, New Hampshire. Cate Street Capital will facilitate the manufacture of and purchases of what may be the world’s first commercial-grade torrefaction machines, provide large amounts of torrefied fuel for electric utility test burns, and also provide lease financing for select operators seeking to acquire and use ATP’s torrefaction machines. That first machine, called the Torre-Tech® 5.0, will be completed by mid-summer 2010 and will produce five tons of torrefied wood, an hour.
Torrefaction is a controlled heating process, in the absence of oxygen, which converts cellulosic biomass, like wood chips or agricultural material, into a cost-effective coal substitute; or a material, which makes stronger, more energy dense and water repellant energy pellets; a superior feedstock from which to make cellulosic ethanol, using gasification methods; and other products.
Mr. James says, “Our new partnership with Cate Street Capital will help accelerate the use of torrefied biomass in the US, create hundreds maybe thousands of jobs and, in the process, make our environment cleaner. We have had very strong, global interest in our machines, as our torrefaction process is believed to be among the most cost-effective in the world.”
Cate Street Capital (CSC) is a New Hampshire-based, private equity firm focused upon investing in renewable energy projects in the United States. Partners of the company have financed over 40 projects in the last 15 years. With the support of its private equity investors and financial institutions, they have raised over $6 billion for these projects.
Bob Payne, Managing Director of CSC, states “Cate Street Capital is very excited about its new partnership with ATP and Kusters Zima, because together we can reliably insure the availability of commercial quantities of torrefied fuels, as a high value-added source of renewable energy for U.S. utilities.”
In January 2009, ATP secured an exclusive license to innovative torrefaction technology, developed by NC State University, and in July 2009, ATP selected the Spartanburg, SC-based Kusters Zima Corporation, as its engineering and manufacturing partner.
KZC has been designing and manufacturing custom machinery since the early 1970’s.
They take great pride in their ability to carry a project from concept to completion. Its 80,000 sq. foot facility provides more then adequate space for manufacturing machinery of varying sizes and shapes. KZC can engineer, design, manufacture, assemble and test the machinery they supply to their customers today.
KZC’s president & CEO, Ken Kruse says, “We are excited about being Agri-Tech’s engineering and manufacturing partner and the opportunity this brings both KZC and our community. Based upon CSC’s orders and ATP’s customer list, we could have as many as 50 new KZC associates, at full capacity, working on ATP-related business.
Mr. James reported, “For the last 60 days, we have been carefully evaluating proposals from three, finalist investment companies. The choice became clear, as CSC unveiled its national plan to promote the use of torrefied fuels, produced using ATP’s machines. CSC’s ability to raise the necessary funding and its capability to take on risks were determining factors, as well”.
“Also important”, said James, “was the financial and technical support we received from key South Carolina agencies and organizations, such as the SC Department of Agriculture, the SC Department of Commerce, the SC Energy Office, the SC EPSCoR IDEA Program and especially SCRA’s SC Launch Program.”
In addition to producing and selling torrefaction equipment, ATP intends to develop and operate a few torrefaction-based processing plants, in conjunction with key strategic partners. ATP intends to become involved in the planting and harvesting of high-density bio-crops, which can be treated by its torrefaction process. In addition, ATP will continue to explore the creation of mobile torrefaction equipment, thanks to a grant from the U. S. Department of Energy, as well as explore ways in which its torrefaction process can promote economic development and job creation in distressed rural communities. ATP can also produce a biochar, for soil enhancement purposes, and a cooking fuel, for the Third-World, which can reduce de-forestation pressures.
For more information, see:
ATP’s website: www.agri-techproducers.com
CSC’s website: www.CateStreetCapital.com
KZC’s website: www.kusterszima.com
