Range Fuels

About Range Fuels

Range Fuels, founded as Kergy in 2006 by venture capitalist Vinod Khosla, was a high-profile cleantech firm based in Broomfield, Colorado, that aimed to revolutionize the renewable fuels market. The company's objective was to produce cellulosic ethanol from non-food biomass, such as wood chips and forest waste, positioning itself as an environmentally sustainable alternative to corn-based ethanol. The core of its operation was a proprietary two-step thermo-chemical conversion process that used heat and pressure to gasify biomass into a synthetic gas, which was then converted into alcohols using a catalyst. This method was designed to be self-sustaining, using the same feedstock to power the plant, and was projected to use 75% less water than traditional corn ethanol facilities.

The company's journey began with significant financial backing and government support. Vinod Khosla, a prominent advocate for ethanol as a means to achieve energy independence, founded the company through his firm, Khosla Ventures. The initial leadership included CEO Mitch Mandich, a seasoned executive with experience at Apple Computer. Range Fuels broke ground on its flagship commercial-scale plant in Soperton, Georgia, in November 2007, an event attended by the U.S. Secretary of Energy. The project was supported by substantial funding, including a $76 million grant from the U.S. Department of Energy, an $80 million loan guarantee from the USDA, over $100 million in venture capital from investors like Khosla Ventures and Passport Capital, and $6 million from the State of Georgia.

The business model was to design, build, own, and operate its production plants, selling the resulting ethanol and other alcohols into the transportation fuel market. The Soperton plant was intended to be the first of many, initially targeting 20 million gallons per year with plans to expand to 100 million gallons. Despite the considerable investment and ambitious goals, the company faced significant technical difficulties during the commissioning phase. After numerous delays, the plant briefly produced methanol in early 2011 but shut down shortly thereafter, failing to produce any commercial-grade cellulosic ethanol. The company ceased operations and laid off its workforce in January 2011, ultimately filing for bankruptcy. The Soperton facility was sold in a foreclosure sale in January 2012 for $5.4 million to LanzaTech, another Khosla-backed venture.