Victoriafirmplans$2.5billiongasolinerefineryinB.C.

north
AndrewDuffy/TimesColonist
January21,201510:06PM

BlueFuel'sJuergenPuetterwiththeplaneheusestocommutebetweenhisSidneyofficeandB.C.'snorth.PhotographBy
ADRIANLAM,TimesColonist

Ifallgoestoplan,VictoriabasedBlueFuelEnergycouldpullthetriggeronconstructionofa$2.5billiongasoline
refineryinnorthernB.C.bytheendofthisyear.
BlueFuelchiefexecutiveJuergenPuettersaidthecompanyexpectstohaveitsengineeringworkdone,plant
designscompleteandpermittinginplacebytheendofthisyearinordertomakeafinalinvestmentdecisiononthe
plantnearChetwynd.
Wecouldstartconstructionin2016,butthingshavetogoreasonablywellforthattohappen,saidPuetter,who
estimatesBlueFuelwillspend$50millionthisyearjusttogettothepointtheyneedtoraise$2.5billionforcapital
constructioncosts.
BlueFuelsrefineryprojectisthefourthtobeproposedfornorthernB.C.In2012,VictorianewspapermagnateDavid
BlacklaunchedacampaigntoestablishKitimatClean,a$22billionrefineryonB.C.swestcoast,whichwas
followedbythe$10billioncoastalrefineryproposedbyPacificFutureEnergy.ThefourthisEagleSpiritEnergys
proposaltoconnectapipelinefromAlbertatoanupgradereitherinnortheasternB.C.ornorthernAlberta.
Puetter,whoischiefexecutiveofAeolisWindPowerandCanadianMethanolCorporation,believestheinvestment
capitalisoutthere.Idontbelievethatsaproblem,hesaidinaninterview.AndIthinkwecandoitlocally.By

locallyhemeansNorthAmerica,thoughhesaidtheyhavehadinterestfromoverseas.
Themoneywouldgotobuildingaprocessingfacilitythatwouldconvertnaturalgastogasolineandproducenearly
onebillionlitresofgasolineannually,theequivalentof20percentofallgasolineconsumedinB.C.inayear.
Becausetheprocessconsumescarbonandthefacilityisfueledbyelectricity,Puettersaidithasasmallcarbon
footprintandwillcreateanidealdropinfuelforplacessuchasB.C.,OregonandCaliforniathathavealowcarbon
fuelstandard.
UsingtechnologylicensedfromExxonMobil,theprocessincludesfirstmakingmethanolanddehydratingitintoa
carbonreducedgasoline.
Wearedoingsomethingthatisgoodfortheplanet,showingyoucanmarryrenewableresourceswithfossilfuels,
Puettersaid,addinghecanseeatimewhengasolinecouldbemadefromonlyrenewableresources.
The1,055acresitefortheplantnearChetwynd,closetoB.C.snaturalgasfields,wouldallowthecompanytouse
existingrailinfrastructuretoshipthefinalproductwithouttheneedforpipelines.
BlueFuelcommunicationsdirectorAlanBrycesaidtheydonthaveanyfirmplansonanaturalgassource.Weare
currentlyindiscussionwithacoupleofpotentialsuppliers,hesaid.Thatisakeyelementoftheequation,butits
notgoingtobeverydifficulttosolve.Peoplewanttogetridoftheirgasupthere.
PuettersCanadianMethanolCorporationalsohasplanstoestablisha$1.8billionmethanolplantatthesamesiteto
producemethanoltobeusedasarawmaterialbyahungrymanufacturingmarket.
Constructionofthetwositeswillrequireasmanyas1,500workersandthetwofacilitiescombinedwillemploy275
to300peoplefulltime.
PuettersaidiftheSiteChydroelectricdamgoesaheadandtheAlbertaoilfieldsreturntocapacity,thecostoflabour
andfindingskilledworkerscouldbeaproblemandcouldmeantheneedfortemporaryforeignworkers.My
preferenceistoworklocally,though,hesaid.
TheplantscouldalsobeaboontolocalFirstNations,whichPuettersaidhavebeenverysupportive.
WhatIlearnedfromthewindpowerbusinessisifyoudonthavesociallicence,yourenotgoinganywhere,he
said.Puetterhastalkedaboutofferingbothlandandwasteheatabyproductoftheproductionofgasolineto
FirstNationsforgreenhousestoestablishgreenhouseproducebusinesses.Withfreeenergyinthenortheastthat
canbeextraordinarilyprofitable,hesaid.
Theplantisinthepermittingstagewiththeprovincialgovernment,andBlueFuelisworkingwiththeB.C.Oiland
GasCommission,AgriculturalLandsCommission,CanadianNationalRailandtheDistrictofChetwynd.
ChetwyndMayorMerlinNicholshasthrownhissupportbehindtheproject.
ThecompanyhasamemorandumofunderstandingwiththeWestMoberlyFirstNation,whichallowsbothparties
toexploreadditionalopportunitiesandcommercialbenefitsarisingfromtheprospectiveproductionofrenewable
hydrogenandgasderivedliquidfuelsonWestMoberlyFirstNationstraditionalterritory.
TheprojecthasalsobeengivenwhatthecompanytermsbroadbasedsupportamongotherTreaty8FirstNations
intheregion.PuettersaidsimilarmemorandumsareclosetobeingcompletedwiththeSaulteauFirstNationandthe
McLeodLakeIndianBand.
ThecompanyalsohastwoformerseniorMethanexCorp.executivesonboard:MichaelMacdonald,Methanexs

formervicepresidentofglobaloperations,andRonBritton,formervicepresident,whoisBlueFuelsnewchief
technologyofficer.
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