AGP plans biodiesel plant expansion

By | December 01, 2004
Ag Processing Inc. (AGP), headquartered in Omaha, announced expansion plans for its biodiesel facility in Sergeant Bluff, Iowa. The plant currently produces approximately 7 mmgy and will expand up to 12 mmgy capacity, according to Senior Vice President Mike Maranell.

The AGP Board of Directors approved the expansion on Nov. 17 and construction plans moved forward shortly afterward. The company hopes to have the project completed by July 1, 2005. To Maranell's knowledge, a contractor hadn't been named. Much of the work will involve infrastructure improvements such as railroad track and inventory tankage intended to improve plant efficiencies and flexibility.

he company sited the American JOBS Bill of 2004 as the guiding force behind the expansion. "The Board and Management had been waiting for Congress to approve new biodiesel tax exemptions before approving this project," Board Chairman Brad Davis said. "We are thrilled that Congress and the President have agreed to legislation that will move biodiesel to the next level."

AGP started operation in January 1996. The company recently renovated and rebuilt a soybean processing complex next door to the biodiesel plant. AGP markets SoyGold brand biodiesel to customers serving the farm and fleet markets through its wholly-owned subsidiary Ag Environmental Products LLC.
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