Web exclusive posted Jan. 22, 2008, at 11:21 a.m. CST 
 
 BioEnergy of Colorado's two Denver plants have ceased operations in the wake of the East Coast bankruptcy of an affiliated company.
 
 Earlier this month, BioEnergy of America filed for Chapter 11 protection in New Jersey after funding for an 80 MMgy plant fell through a year ago. The plants are all owned principally by Tom Davanzo, who began the Colorado soy-based plants in 2006.
 
 Davanzo expects the New Jersey plant, which was only 30 percent complete, to be mothballed. "For someone to come in and want to finish off our particular design that they're not familiar with, or to reconfigure the plant to a design that they are familiar with, is really a big undertaking," he said. "We've talked to a lot of people, but it's an awful big project, what with the prices of raw materials today."
 
 BioEnergy of America lists $1 million to $10 million in assets in its bankruptcy petition, ands $10 million to $50 million in liabilities.
 

 The Colorado plants face a similar uncertain fate as the New Jersey plant. Davanzo, an advocate of niche operations located near transportation and feedstock sources, departed from that philosophy in seeking funding for the New Jersey refinery. The two Colorado plants produce a combined 18 MMgy of biodiesel. "We changed the whole corporate structure from small plants with entrepreneurs to a more sophisticated corporate structure," he said. Colorado had several executives under contract, and expenses for those operations "sucked all the capital out of the company" after funding fell through in New Jersey.
 
 "There weren't very positive margins to the business" that would have enabled the Colorado operations to pay off the mounting debts, Davanzo continued. "I'm afraid that the Chapter 11 of the New Jersey operation will probably suck the whole company down the tubes."
 
 Davanzo said he's not sure what will happen to the Colorado plants because a bankruptcy judge will determine their fate. "My team is still very optimistic," he said. "It's a strong industry. You've just got to be a little more creative. I need to see this project through to wherever it ends up."

Bankruptcy hits two Colorado biodiesel plants

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Bankruptcy hits two Colorado biodiesel plants