Posted: Oct 16, 2011 10:42 AM by AP
Updated: Oct 16, 2011 12:47 PM
BATON ROUGE, La. (AP) - A company is studying the possibility of
basing a $30 million biodiesel refinery capable of producing 30
million gallons of fuel per year at the Port of Greater Baton
Port executive director Jay Hardman told The Advocate
(http://bit.ly/owDkkP) that Alabama Renewable Energy has asked the
port for a six-month option on a vacant facility once used for a
specialty chemical plant.
Hardman said he expects the company to seek a 10-year initial
lease on the property. He said the company consists of two "very
knowledgeable, well-heeled" engineers.
According to the port, the plant would cost $30 million to build
and would employ 40 people with an annual payroll of $3.9 million.
Hardman said the site would allow the company to ship fuel by
truck, rail or pipeline.
Hardman said the port has been approached by a couple of other
companies interested in biodiesel projects but those did not work
A federal mandate that requires 7.5 billion gallons of renewable
fuel to be mixed into the nation's gas supply by next year is
helping spark investment in biodiesel plants, including some major
projects in Louisiana.
Valero Energy Corp. has invested $241 million in a renewable
diesel facility with an annual production capacity of 137 million
gallons. The biodiesel plant, next to Valero's refinery in Norco,
began production in January.
Tyson Foods Inc. and Syntroleum Corp. have invested $126 million
at their joint-venture biodiesel plant in Geismar.