Direct Fuels benefits from biodiesel production facility at its fuel terminal

April 15, 2008

BY Timothy Charles Holmseth

Web exclusive posted April 24, 2008 at 12:53 p.m. CST

Direct Fuels, the largest independent regional fuel distributor and specialty refiner in North Texas, has opened a biodiesel production facility at its Euless, Texas, fuel terminal. Direct Fuels is one of two biodiesel producers in North Texas, but is the only one colocated at a fuel terminal, which allows for blending of biodiesel into petroleum to occur in accordance with customer need. The facility has a potential output of 10 MMgy.

Production at the plant began in March and offer blends ranging from B5 to B100. Warren Bonham, president of Direct Fuels, said the timing of the facility's production comes at a good time. "The opening of our biodiesel facility is very timely, as petroleum-based diesel prices soar to record highs," he said.

The facility will utilize production technology, allowing significant flexibility in terms of feedstock choice, which will begin with various animal fats but will change depending on market conditions.

In January Direct Fuels opened an 11-acre ethanol distribution complex in Euless, Texas.

Bonham said the facility's location is important, allowing for almost half of 2008's revenue to be generated by renewable and recycled fuel. "The plant is centrally located in the DFW Metroplex and offers diesel retailers and distributors easy and convenient access to both alternative fuels, as well as petroleum fuels, Bonham said. "With our fully operational biodiesel and ethanol operations, combined with our existing transmix operations, we expect more than 40 percent of our 2008 revenue to be generated from renewable and recycled fuel."

As part of the biodiesel operation, Direct Fuels has constructed a dedicated in-house laboratory facility. Bonham said the company is committed to producing a very high quality product and the laboratory allows real-time testing to ensure that all biodiesel produced will meet the appropriate product specification.

Direct Fuels announced it has also begun the process of obtaining BQ-9000 accreditation from the National Biodiesel Accreditation Program. The company hopes to complete the rigorous assessment of their facilities by the end of the year.

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