BioSelect and Chevron begin biodiesel production on Galveston Bay
April 25, 2007
BY Michael Shirek
Posted May 30, 2007, at 10:22 a.m. CDT.
With off-take agreements for its full 20 MMgy capacity, Galveston Bay Biodiesel officially opened this week in Galveston, Texas. A joint venture of BioSelect Fuels LLC (a division of Standard Renewable Energy LLC) and Chevron Technology Ventures (a division of Chevron USA), the plant is expected to undergo expansion to 110 MMgy in the future as part of BioSelect Fuels' goal of 470 MMgy of capacity by 2010.
The two companies held a ribbon-cutting Tuesday with U.S. Senator Kay Bailey Hutchinson, U.S. Representatives Ron Paul and Nick Lampson, Galveston Mayor Lyda Ann Thomas, and Tobin Harvey, senior advisor with U.S. DOE in attendance.
The plant will initially use soy oil as its primary feedstock with market factors determining future use. "We really see soy as a feedstock, not the feedstock," said BioSelect President Bill Spence. With the plant's location on Galveston Bay near the busy Port of Houston, the only limit to the company's choice of feedstock is what can be put on a ship.
The pairing of BioSelect Fuels and Chevron Technology Ventures (which holds a 22 percent equity position in Galveston Bay Biodiesel) is advantageous to both parties, according to Spence. "The quality of the fuel-that's what attracts them," he said of Chevron Technology Ventures' stake in the company. "The second thing is that most of our guys are ex-energy industry, so they're inside the tent. It really says we understand what they want and they understand what we're trying to do.
"We are the strongest biodiesel producer on technology and science," he added. "We have over 300 years refining and chemical experience and Chevron's very progressive in the renewable space."
"Chevron's investment is a tangible manifestation of the company's strategy to invest in renewable energy technologies," said Donald Paul, vice president and chief technology officer at Chevron. "Biofuels are playing an increasingly important role in diversifying our nation's energy portfolio."
"Chevron is setting an example for the industry by constant innovation and proactive leadership to create new energy sources, like the added domestic fuel production capacity at BioSelect, which is critical in meeting growing demand," said John Berger, chairman and CEO of BioSelect's parent company, Standard Renewable Energy.
Although the opening of Galveston Bay Biodiesel is a big step for BioSelect Fuels, Spence says it's just that: a step. "We really believe we've got the technical team in place to carry our vision forward," he said. "In the U.S., the market's not really developed. We need a political effort to push that over the hump."
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