A Houston company developing biodiesel plants in Texas and Louisiana said Tuesday that it has received investment from Goldman Sachs. Green Earth Fuels said Goldman Sachs invested through its business unit, GS Power Holdings LLC. Green Earth's majority investors include Riverstone Holdings LLC and the Carlyle Group.

Green Earth is building an 86 MMgy biodiesel facility at the Kinder Morgan Galena Park Liquids Terminal located on the Houston Ship Channel in Texas. It's expected to be on line in the third quarter of 2007. The company is also developing an 86 MMgy plant at the Kinder Morgan Terminal in Harvey, La. Construction is expected on that plant in early 2007.

Goldman Sachs is one of the oldest and largest investment banking firms in the world. The firm acquired its Green Earth interest from the Carlyle/Riverstone Renewable Energy Infrastructure Fund.

Riverstone is a New York-based private equity firm focused on energy and power. The Carlyle Group is a global private equity firm investing in buyouts, venture capital, real estate and leveraged finance in North America, Europe and Asia.

Green Earth President and CEO Greg Bafalis said Goldman Sachs' expertise in energy, financial and commodity markets will add considerable value to the team. "With Riverstone, Carlyle and Goldman Sachs as our investors, we have three of the largest and most experienced energy infrastructure players in the United States supporting our continued growth," he said.

Green Earth says its biodiesel facilities will be "embedded within the existing petroleum complex," which is what they are accomplishing with their first two plants. Kinder Morgan has a 415-acre liquids terminal along the Houston Ship Channel in Galena Park, Texas. Kinder Morgan's 100-acre Harvey, La., liquids terminal is located along the Mississippi River.

Dave Nilles is Online Editor for Biodiesel Magazine. Reach him at dnilles@bbibiofuels.com or (701) 373-0636.

Posted: 8:58 a.m. CST Wednesday, December 20, 2006