Cargill breaks ground on Iowa plant, invests overseas

By | October 01, 2005
Iowa Gov. Tom Vilsak and other dignitaries attended the Aug. 10 groundbreaking ceremony for Cargill Inc.'s biodiesel and glycerin production facilities that will be adjacent to its soybean crushing facility in Iowa Falls, Iowa.

Construction has begun on the new additions that will produce 37.5 mmgy of biodiesel and 30 million pounds of USP-grade glycerin annually. Soy oil will be the primary feedstock, although the plant has the capacity to use animal fat or waste grease in the future. Plans include BQ-9000 certification once the plant is operational in April 2006.

Memphis-based Lurgi PSI has been contracted to design and build the add-ons, providing turnkey technology, engineering, building materials and equipment. Cargill Bio Fuels will market the biodiesel, while Cargill Industrial Oil & Lubricants will market the glycerin products. Both will be marketed within the United States.

"The price volatility of the soybean oil and petroleum markets can be challenging for biodiesel producers," said Wayne Teddy, president of Cargill Grain and Oilseed Crush Supply-North America. "However, we believe that we are uniquely positioned to manage this volatility and make this enterprise a success by leveraging Cargill's experience with other renewable fuels, utilizing our expertise in processing, logistics and risk management, as well as accessing our production of multiple feedstocks."

Similarly, Cargill has invested in a 200,000-metric-ton biodiesel facility in Mainz, Germany, that will be built near Cargill's oilseed crushing and refining operations in the region. The plant is slated to begin production in the third quarter of 2006.

The new facility will enable us to meet the increasing demand from our customers for biofuels," said Jack van den Hoek, general manager of Biodiesel and Biomass at Cargill Europe. "Mainz is ideally situated for the production and supply of biodiesel-both in terms of its geographical location and in the availability of raw materials such as rapeseed oil and other vegetable oils, which can be supplied via the Rhine [River]."
-Staff Report
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