Biodiesel Firm Targets NC

Buffalo, N.Y.-based biodiesel company Global Earth Energy has issued a news release saying it plans to "establish relationships with local feedstock suppliers in North Carolina, a state with heavy concentrations of agriculture and meat processors."

Global signed a letter of intent last December with American Distillation to build a 5-million-gallon-a-year biodiesel plant adjacent to American's existing chemical plant in the Brunswick County community of Leland.

Global said it would rent the land and build the biodiesel facility, which will begin operations by American later this year. Under a production and fuels blending agreement, Global will then sell the produced biodiesel.

"With only 170 biodiesel plants in production in the U.S., the market is hungry for new biodiesel production capacity," said Sydney Harland, Global's president and CEO. The American Distillation collocation provides tankage, personnel and a laboratory, he said.

Harland said Global chose North Carolina for a number of reasons. "The feedstock is around here, this is a good poultry and hog area. If we get into soy, it would be a better location because you don't have the problems as in New York with a plant where you need a substantial building because of the climate."

He said he sees several market opportunities in the area, including two military bases that have mandated biofuel targets.

"Establishing relationships with local feedstock suppliers will help ensure that we have adequate long-term supplies of diversified feedstock to run our plants at full production capacity."

The company did not indicate how, or with whom, it intended to tap North Carolina for raw materials.

Thu, 03/26/2009 - 04:00