Xenerga aims to start turnkey biodiesel production

By | January 24, 2007
Xenerga Inc. in Orlando, Fla., plans to begin production at its first biodiesel partnership plant in February.

Xenerga founder Jason Sayers said he and his partner Victor Clewes became interested in biodiesel because of their original business FiltaFry, a restaurant grease recycler. Through its contacts with the rendering industry, Xenerga has entered into long-term feedstock contracts for as many as 40 5 MMgy biodiesel plants. These plants will be owned by entrepreneurs in partnership with Xenerga. Xenerga will supply the physical plant, feedstock contracts, training and certification for each operation.

Xenerga will import its manufacturing equipment from Germany. By building a large number of plants from a standard design, Sayers said the company will benefit from economies of scale. He said the company can have a plant operating about six weeks after permitting is completed. "Mark Fear is our third partner, and he has manufactured more than 100 biodiesel plants in Europe," Sayers said. "We've got him manufacturing our equipment. The [equipment] is tested in Germany, put in shipping containers and shipped over to the states."

Sayers put the average price of building a 5 MMgy plant at about $5 million. Xenerga's plants should cost its partners less than $2 million. Xenerga will also take a royalty from each plant's production. In turn, Xenerga supplies its partners with a turnkey operation with a guaranteed feedstock supply. "The main thing we recognized is that feedstock will be the main issue for most people," Sayers said.

Xenerga is also working on getting BQ-9000 accreditation for its production.

Sayers is seeking investors who are looking for an opportunity in a growing industry. "The whole Xenerga opportunity is based toward investors," he said. "You have to assume that someone who comes into this knows nothing about biodiesel, but they want to make money. We help them get permitting. We then install the plant. We have a team to install it that we keep there to make sure the first batches of oil are produced and everything comes out the other end. We train all their staff. If there are any problems, we send a guy out to fix it."

Although Xenerga hadn't formally advertised for partners to invest in its plants, Sayers said the company had received more than 600 expressions of interest before the end of 2006. A prospectus is available through the company's Web site at www.xenerga.com.
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