A Glimmer of Economic Improvement

September 16, 2008

BY Bryan Sims

The plant construction list in last month's issue of Biodiesel Magazine contained 13 plants. This month, seven new plants have been added to the list. In total, 18 plants are listed here, including three completed projects and two expansions.

Although construction costs and feedstock input prices remain relatively high in absolute terms, the addition of new plants to this list is encouraging. This shows that the industry is moving ahead, despite volatility in commodity markets, in order to meet the 500 MMgy biomass-based diesel blending requirement by the end of 2009 as prescribed by the Energy Independence & Security Act of 2007.

The new listings are: Eagle Creek Fuel Services LLC, a 1 MMgy plant in Baltimore; Kyoto Fuels Corp., a 9 MMgy multi-feedstock facility in Lethbridge, Alberta; Methes Energies, a 13 MMgy multi-feedstock plant in Sombra, Ontario; Metro Biofuels, a 110 MMgy multi-feedstock facility in New York City; New Leaf Biofuels LLC, a 2 MMgy multi-feedstock plant in San Diego; Terra Bioenergy LLC, a 30 MMgy plant using animal fat in St. Joseph, Mo.; and White Mountain Biodiesel, a 3 MMgy facility in Haverhill, N.H.

Four plants completed construction recently. According to Executive Vice President Joe Kirby, Eagle Creek Fuel Services LLC has been running test batches of biodiesel meeting ASTM quality standards since June. Global Alternative Fuels LLC began producing test batches in El Paso, Texas, in September. Northington Energy, a 3 MMgy facility in Wartburg, Tenn., and Sun Power Biodiesel LLC, a 3 MMgy plant in Cumberland, Wis., started up in August.

SeQuential-Pacific Biodiesel LLC in Salem, Ore., completed an expansion from 1 MMgy to 5 MMgy in August. On Aug. 29, country singer Willie Nelson performed at a grand opening ceremony to help promote the company.

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