TexCom announces Texas plans

By | January 01, 2006
A Texas energy company has big plans in the Lone Star State. Shortly after announcing plans for a 30 MMgy biodiesel plant, Houston-based TexCom Resources Inc. has announced plans for a second facility.

TexCom Resources Inc. has signed a lease agreement with Puerto Los Caballeros Properties for a site in Corpus Christi, Texas, where TexCom intends to build a biodiesel plant. The announcement comes on the heels of TexCom's plans to build a biodiesel plant in Houston.

The 11.6-acre Corpus Christi location contains an on-site storage facility and other terminal facilities provided by Puerto Los Caballeros under a long-term lease. "This agreement provides us the opportunity to have a second biodiesel production facility in Texas that is strategically located for receipt of raw materials and access to fuel distribution markets," TexCom President Louis Ross said.

The plant will produce 30 MMgy of biodiesel using soy oil as a feedstock. The plant site is located on the Corpus Christi shipping channel, allowing the plant to receive soy oil by barge or rail. The plant will be constructed by Memphis, Tenn.-based Lurgi PSI with an estimated price tag of $9 million. TexCom is in the final stages of securing funding for the plant. Currently TexCom is preparing permit applications and plans to start construction later this month. The plant is scheduled for start-up in December 2006.

Unlike most biodiesel plants, the Corpus Christi plant is being equipped with blending capabilities. The plant will be blending B20 on site and offering B100 to create a broader marketplace for TexCom. "It was our strategy from the beginning to be able to blend B20 at the plant," said TexCom's Jay Charles. "It gives us another opportunity to market our biodiesel." There is the possibility the plant will produce higher blends of biodiesel in the future, Charles added.

A biodiesel marketer hasn't been declared for the Corpus Christi plant yet. "We're negotiating with Top Water Management to enter into a marketing agreement," Charles said. When completed, Top Water Management LLC will be the sole marketer for both B20 and B100.
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