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KiOR starts production at Mississippi biorefinery

Associated Press Modified: November 8, 2012 at 6:30 pm •  Published: November 8, 2012

Analysts expected a loss of 26 cents per share, on average.

KiOR said it had $74 million in cash as of Sept. 30, and $113 million in long-term debt.

Cannon said the Columbus plant is 50 times larger than the KiOR's demonstration plant, but that it has had only routine startup problems so far. The plant could achieve its full output rate by late next year.

Cannon also said company researchers had found ways to improve the amount of fuel that KiOR could extract from a ton of wood. Cannon also said KiOR had found a way to reduce the undesirable byproduct of coke, which would allow it process 25 percent more wood at Natchez and other future facilities without having to spend any more money to expand.

The company expects that the Natchez facility will yield 72 gallons per bone dry ton. The company's long-term target is 92 gallons per ton, and Cannon said the company believed it has "cleared a path" toward yields above 72 gallons.

KiOR has agreements to sell its fuel to Hunt Refining Co., to a joint venture of Chevron Corp. and Weyerhaeuser Co. and to FedEx Corp. Cannon said the company is still seeking a key Environmental Protection Agency approval for its gasoline sales, which would allow it to get a subsidy, and may store gasoline production from the Columbus facility until it wins the approval.