In case you were wondering how KiOR, the biofuel company backed by Khosla Ventures, is coming along, the firm announced its fourth quarter and full 2011 year earnings on Monday. And yep, the company is still in a pre-revenue state.
KiOR says it lost $64.06 million for the full year in 2011 (a larger loss than the $45.93 million in 2010) , and lost $14.94 million for the fourth quarter (a larger loss than $9.67 million for Q4 2010). The company isn’t generating revenues as it’s in a pre-commercial state, and the earnings weren’t a surprise to anyone that’s been following the company. KiOR expects to to incur operating losses through at least 2013.
But KiOR is making progress on the construction of its plant in Columbus, Mississippi, and that plant is 75 percent complete, said KiOR in its earnings statement. The company’s goal is to start production in the second half of the year at the Columbus factory, and during the fourth quarter of 2011 spent $44.2 million on construction of the Columbus plant.
Building a biofuel factory takes significant capital. In January KiOR raised a new $75 million loan from existing investors Alberta Investment Management, a fund that manages billions on behalf of the province of Alberta, Canada, and Khosla Ventures, the venture firm that was an investor early on and now has voting and investment control over more than 60 percent of the outstanding shares of Class A common stock.
KiOR started building the initial stage of its commercial production facility in Columbus, Miss., in the first quarter of 2011. KiOR plans to start building its larger standard commercial production facilities in the second half of 2012, in Newton, Miss., and this size of facility is expected to cost around $350 million.
Check out my extensive piece on KiOR I published earlier this year: the perils of cleantech investing: KiOR and the long-term, high-risk view. KiOR recently closed at $11.60, down from its IPO debut at $15 per share.