Nova Biosource secures $41 million in financing to complete 60 Mgy Seneca, Illinois biodiesel plant

In Texas, Nova Biosource Fuels announced a $41 million senior secured credit facility with WestLB AG, including a $36 million construction loan and $5 million in working capital.

The funds will be used to complete the company’s 60 Mgy biodiesel plant in Seneca, Illinois. The plant is scheduled to be complete by summer 2008.

The news was positive for the Illinois biodiesel industry, which had been cited by  BBI International as the third biggest biodiesel producing state, with 199 Mgy in actual or planned capacity. The state had been beset by high soybean oil prices.
Recently, construction was halted at the North Prairie Productions biodiesel plant in Illinois owing to high soybean oil prices. The company is planning a strategic review before potentially resuming construction efforts.

The shutdown continued a trend which has affected at least ten biodiesel plants worldwide, including the nearby Freedom Fuels biodiesel plant in Mason City . Grainnet.com reported in the fall on two plant shutdowns in Pennsylvania, where state production has dropped to 5% of capacity.

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