Keystone BioFuels breaks ground

By | October 01, 2005
Pennsylvania soybean farmers are closer to having another market for their soybeans. Keystone BioFuels Inc. began construction on its biodiesel production facility in Shiremanstown, Pa., in early September, according to Keystone BioFuels President and CEO Race Miner.
The 1 mmgy plant will use soy oil as feedstock. Miner said Pacific Biodiesel Inc. is under contract to provide the facility's process technology. The project received final go-ahead when its wastewater discharge permit was granted in late August.

The biodiesel plant will be housed within an existing manufacturing facility previously owned by the Quaker Oats Co. The facility was once used to produce cereal products until the late 1990s. Miner said the lease for the building was negotiated in early spring 2005. He said extensive work is required to prepare the manufacturing complex for the biodiesel facility. Much of the existing mechanical equipment has to be removed. Miner said tanks were installed in September.

Miner said he has been in negotiations with several soybean crushing facilities in the area for feedstock. One soy crusher is located 75 miles north in Danville, Pa. A second crush facility is located 25 miles away in Lancaster County. Those facilities could produce approximately 3 mmgy of soy oil.

Miner said he hopes to begin producing biodiesel before the end of the year. He is currently negotiating offtake agreements. He said most demand is coming from heating oil markets throughout the Northeast.
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