Biodiesel producer forms new company with petroleum refiner

Endicott Biofuels and petroleum refiner Holly Corp. may have just shown the true impact of RFS2. Endicott, which has been working since February to complete a 30 MMgy biodiesel facility in Port Arthur, Texas, has partnered with Holly Corp. to form a new biofuel company that is bringing Endicott’s biodiesel know-how together with the Dallas-based petroleum refiner. The new company, Sabine Biofuels, will put to use a process created in part by Endicott and Davy Technologies that may seem almost too good to be true. “We have true second-generation technology that spans the entire spectrum of fats, oils and greases in any proportion and in any quantity,” Christopher Frantz, principal for Endicott, told Biodiesel Magazine, which, he added, can dynamically change on the fly in a continuous process.

The plant is being erected at KMTEX Ltd.’s site in Port Arthur where KMTEX already produces chemicals. According to Frantz, “this is an advantaged location because of KMTEX’s facility. There is tremendous capital efficiency there. The site is also rich in transportation modalities—rail, truck and barge.” The projected date for the facility’s completion is 2012.

Frantz also said the construction is going well, and they are extremely excited to have partnered with Holly on the project. And although he declined to speculate on the reason why Holly has committed to the 50/50 partnership, he did point out that with RFS2 comes “an obligation that has to be met.”

But there should be no doubt as to why Holly has entered into the agreement, according to a statement by George Damiris, senior vice president for supply and marketing at Holly. “This joint venture will assist Holly in meeting its biofuel obligations under the federal Renewable Fuel Standard,” adding that Holly is looking forward to the partnership with Endicott, “and possibly others in the future.”

Frantz said the two companies will work together “on the marketing plan to address the off-take” of the biodiesel produced at the facility, adding that along with the excitement of the new partnership, “it is the first step in building a multiplant enterprise,” which he said is Endicott’s overall business strategy. Holly currently operates petroleum refineries in Artesia, N.M.; Tulsa, Okla.; and Woods Cross, Utah. The company is also currently considering a merger with Frontier Oil Corp.