SG Preston locks in renewable diesel EPC contractor

By Ron Kotrba | October 21, 2015

SG Preston has struck an agreement with IHI E&C, a Houston-based EPC contractor and subsidiary of Japan-based IHI Corp., for a multi-facility program to include development and construction of what SG Preston says is at least five renewable diesel plants scaled at 120 MMgy each.

SG Preston says it will deploy its initial biofuels strategy at five locations—South Point and Van Wert, Ohio, Logansport, Indiana, and in Michigan and Ontario, Canada, with specific locations for the latter two yet to be announced.

Biomass Magazine published a feature article about SG Preston and its grand vision for renewable diesel last spring. At the time, the company was still in the process of selecting its EPC contractor. 

“IHI E&C is a perfect fit for our U.S. and global strategic vision,” said R. Delbert LeTang, SG Preston president and CEO. “The need to drive thought leadership and momentum toward tangible solutions in the U.S. alternative energy market has become a strategic imperative that we intend to lead in alliance with global blue chip partners in engineering and construction, technology and manufacturing.”

IHI E&C will serve as turnkey EPC to SG Preston’s biofuels initiative, delivering what SG Preston says is “lump sum,” fixed price engineering and construction, what the company calls “a first in the renewable diesel and jet fuels landscape at commercial scale.”

“We have maintained our commitment to focused execution of our volume-based advanced biofuels plan,” LeTang said. “We are extremely pleased to launch this industry-changing initiative in coordination with IHI E&C as a part of our integrated system of global, blue chip partners to rapidly take strategy and concept into design, engineering and execution at commercial scale.”

IHI E&C President Glyn Rodgers said, “IHI E&C is tremendously excited to apply our program management expertise to this ground-breaking set of renewable fuels projects. We’re pleased to support SG Preston in pursuit of their far-reaching vision, extending engineering, procurement and construction services from our Houston base of operations.”

SG Preston says IHI E&C will “steward and guide SG Preston’s multi-facility program to create and standardize replication benefits in engineering and design targeted at delivering volume quantities of advanced renewable diesel and jet fuel to global market customers in an abbreviated timeframe. This highly efficient development strategy will include abbreviated estimate development and synergies in procurement, construction, commissioning, and plant start-up.”

In addition to producing an on-road renewable diesel fuel, the company is targeting commercial and military aviation fuel markets as well. “The aviation industry’s focus on renewable fuels is driven by increasingly stringent environmental mandates, and the need to deliver more environmentally friendly fuels, all while facing blending challenges, commodity pricing volatility to their primary fuels, risks to transportation infrastructure, logistics, and physical capacity constraints,” the company says.

SG Preston says the plants will use proven, commercial-scale technologies for the production of renewable diesel and jet fuel.

To read more about the company’s business, vision, choice of technology and more, click here.