Tellurian Biodiesel, Golden State Foods form new company

By Kris Bevill | May 14, 2008
California-based biodiesel marketer Tellurian Biodiesel Inc. has partnered with fast-food supplier Golden State Foods to recycle used cooking oil from McDonald's and other quick-service restaurants into high-grade biodiesel.

The new venture, Encore BioRenewables, is expected to open its first production facility in southern California in early 2009. Initial capacity will be 5 MMgy, with the option to increase to meet demand. Joe Gershen, president of Encore BioRenewables, and vice president of sales and marketing at Tellurian, wouldn't name the plant's specific location, adding that all Encore facilities will be strategically located in urban areas closest to feedstocks and end users.

"Our focus is to recycle second-use fats and oils," Gershen said. "This joint venture with Golden State Foods offers a sustainable solution for [producing] biodiesel."
Golden State Foods, headquartered in Irvine, Calif., is a $3.3 billion company that provides for quick-service restaurants worldwide. The company has distribution centers on both the East and West coasts, as well as in Texas, Wisconsin, Illinois, Nevada, Arizona, Hawaii and Egypt.

The partnership with Golden State Foods gives Encore BioRenewables the feedstock supply to produce as much as 100 MMgy of biodiesel nationwide, according to Gershen.

Once the biodiesel plant begins operation, some of Golden State Foods' fleet will use the renewable fuel. According to Bill Sanderson, corporate vice president of finance for Golden State Foods, the company's fleet consists of 250 tractors in 11 markets around the United States. Some of the vehicles are already being fueled with various blends of biodiesel, and Sanderson said Golden State Foods will switch to Encore BioRenewables' fuel "where it's economical."

Sanderson is "very excited about the green initiative" being taken on by his company. "We wish we were open today, given the current market," he said. "We're happy to help our customers, including McDonald's and Starbucks, achieve their social and environmental responsibilities."
 
 
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