Greenergy starts biodiesel plant construction

By | February 01, 2006
Greenergy International Ltd., the United Kingdom's leading importer, blender, trader and marketer of diesel fuel, has started construction on a $23.4 million biodiesel facility that will initially produce 100,000 metric tons of the renewable fuel annually. The company expects to increase production to 150,000 metric tons after it comes on line in fall 2006.

Construction started in early December near the city of Immingham in Humberside, England. "We have established, alongside our core fuels business, a commercially successful and fast-growing biofuels operation that stands behind the production of more than 1.8 billion liters of blended biofuels every year," said Andrew Owens, chairman of Greenergy International.

Desmet Ballestra will design and build the plant, which will be owned by Greenergy International subsidiary Greenergy Biofuels Ltd. The brownfield site on the eastern coast of England already has existing sea, rail and road access, as well as pipeline links to local petroleum oil refineries. The facility is ideally adjacent to Simon Storage, the U.K.'s leading independent operator of bulk liquid and gas storage terminals, while the port of Immingham is one of the largest petroleum ports in Europe with two world-scale refineries handling about 20 million metric tons of fuel products per year.

The plant will use rapeseed grown by more than 1,000 farmers under Greenergy's "Field to Forecourt" contract. Cargill will manage the rapeseed supply through Frontier Agriculture, a jointly owned venture with ABF Holdings Ltd. The facility will help the country meet its new Renewable Transport Fuels Obligation, requiring all road fuel to contain five percent biofuels by 2010 (see page 15 for more information).
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