GSPI, ABF begin biodiesel production

By | March 01, 2004

While taking total ownership of its production facility, American Biofuels (ABF) announced the arrival of 50,000 gallons of soybean oil at its Bakersfield, Calif., biodiesel facility in late January.

Reportedly the first feedstock shipment to arrive at ABF, the soybean oil was purchased from Archer Daniels Midland Co. (ADM) and delivered in two 25,000-gallon railroad tank cars.

In January, ABF signed a 50/50 joint venture contract with Hondo Chemical Inc. to build and operate the Bakersfield plant on Hondo property. In late January, ABF (which is 35 percent owned by Green Star Products Inc.) agreed to buy Hondo's ownership and take full use of the site and its infrastructure. In return, Hondo received cash, ongoing royalties and the ability to continue marketing ABF-produced biodiesel to its customers.

In December, ABF/Green Star purchased land near Phoenix, Ariz., reportedly to build ABF's second biodiesel plant. It includes a 9,000-square-foot building with office space and a railroad spur adjacent to a loading dock. The site allows for a 10- to 15-mmgy plant; equipment has already been ordered, according to Green Star.

"The Greater Phoenix area fits this profile very well," Joseph LaStella, director of ABF and president of GSPI, said in a press release. "We feel existing biodiesel users in the Greater Phoenix area will welcome local production."

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