As per the terms of the agreement, Murphy will provide energy crops and residues grown on the company’s six thousand acres of land for the plant estimated to produce twenty million gallons of cellulosic ethanol.
The proposed crops will be grown on acreage that is not typically used for grain production and would represent the support of the supply chain for the planned Chemtex biorefinery, the company stated in a statement.
The supply agreement is expected to commence following the financial closure for the planned facility.
Murphy Brown government relations and public affairs VP Don Butler said that the company is delighted to partner with Chemtex to bring Cellulosic Ethanol to Eastern North Carolina.
"The production of these feedstocks will be a natural complement to livestock production in the state and will bring new opportunities for farmers large and small," added Butler.
"This project will demonstrate to policymakers that their focus should be on encouraging these American-made next-generation biofuels that are produced without consuming foodstuffs."
Chemtex is further planning to increase the supply through contracting additional acreage over the next few months.
Chemtex supply chain development director Matt Harrod noted: "It’s a privilege to be working with Murphy Brown and is representative of the support we have received in North Carolina. It’s a great first step in filling out our supply needs and we are looking forward to contracting with additional farmers in the area."
