PASADENA, Tex. (WTVA) -- KiOR plans to double the production capacity of its Columbus facility by constructing a second processing plant in Lowndes County.
Officials announced Thursday plans to pursue $225 million in financing for the project they are calling Columbus II.
KiOR has received a commitment of up to $50 million from Khosla Ventures and Vinod Khosla to serve as the cornerstone of the financing for the project.
The company plans to break ground within 90 days of raising sufficient equity and debt capital, with construction expected to be complete 18 months after work begins.
KiOR is currently increasing production at the current production facility, making gasoline, diesel and fuel oil through a process that turns wood waste into a synthetic crude oil for refining.
The company say once Columbus II is in operations, they expect both plants to produce 92 gallons of fuel per bone dry ton of biomass.
Company officials say the expansion is part of a long-term business plan to help the company be profitable by 2015.
They say the plant will be easier to build and startup.
They company says recent improvements to their technology will allow them to use a wider range of less expensive feedstocks.