Cliffs Natural Resources has agreed to sell its Renewafuel biofuel production facility to minority partners in the venture, so the plant in the central U.P. may yet see production.
The sale agreement comes after the idling of
Renewafuel operations in September 2011. Cliffs decided not to pursue the venture then, as its focus was more on its core business of mining and securing raw material assets for steelmaking.
"Our basic reason goes back to the decision to focus our resources on our core business of supplying raw materials to the steel industry," says Dale Hemmila, director of public affairs in North America for Cliffs.
Still, the company has deep roots in the U.P., and was looking for a buyer who would invest in the area and keep the facility at its K.I. Sawyer location. That buyer was RNFL Acquisition LLC, which was formed by a group of investors that included Renewafuel's minority partners. Included in the sale are the brand, assets, inventory, and the lease on the production facility.
"We are pleased to be able to reach an agreement to sell the facility to a company that has indicated they want to maintain and operate the facility at Sawyer," Hemmila says.
The Renewafuel facility is in the
Telkite Techonology Park near Sawyer International Airport, and was built to produce biofuel cubes usable in coal-burning furnaces. The high-energy, low-emission cubes are made from sustainable wood waste and agricultural feedstocks.
Writer: Sam Eggleston
Source: Dale Hemmila, Cliffs Natural Resources, Inc.
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