Texas biodiesel plant to start first train in Nov

19 October 2006 21:41  [Source: ICIS news]

HOUSTON (ICIS news)--BioSelect Fuels said on Thursday it would begin production at a Galveston, Texas biodiesel plant in mid-November and was planning to build additional plants elsewhere.

Bill Spence, chief executive of BioSelect (formerly Galveston Bay Biodiesel), said the firm was near startup of its first 20m gallons/year train at the plant. He said other trains could be added to a total of 100m gallons/year. Last year, total US biodiesel output was 75m gallons.

Spence said his firm was seeking locations for another 200m gallons/year of capacity. As at Galveston, the company was only considering places served by deepwater vessels, barges, rail and trucks. "Our goal is to have only transportation-advantaged sites," he said.

He said the Galveston plant initially would operate on soybean oil "and then move to other feedstocks." Chevron Technology Ventures has taken a 22% equity position in the Galveston project.

Spence said with diesel fuel selling close to the $1.90/gallon breakeven point for biodiesel, economies of scale will be critical for biodiesel producers.

He spoke at the annual Methanol Forum, sponsored by the Methanol Institute and Jim Jordan & Associates, Houston.

By: Patrick Crow
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