Chesapeake Biodiesel proposes 30 Mgy soy biodiesel plant in Maryland

In Maryland, Chesapeake Biodiesel have proposed a 30 Mgy soybean oil biodiesel plant near Hagerstown, which will also produce approximately 100 million pounds of soybean meal. The company is investigating three potential sites, with a goal of opening by fall 2009.

Maryland has been increasingly aggressive in its biofuels policy. The state government unveiled a plan earlier this year to increase purchases of hybrid and flex-fuel vehicles. Under the plan, 40% of state vehicle purchases will be flexfuel cars and trucks that run on biofuels, and to increase hybrids from 30 to 100 vehicles. The state has a 9100 vehicle fleet.

Hybrids were given a smaller purchasing target due to the high cost of the vehicles. The Maryland study on hybrid conversion projected that gasoline would have to reach $5.60 per gallon before hybrids were economically viable. Hybrids reach break-even at 200,000 miles, but Maryland state vehicles average 100,000 miles before they are replaced.

However, a panel of Maryland experts recently concluded that current incentives to produce biofuels are not sufficiently attractive, and recommended an additional $4 million be earmarked for biofuels promotion and a faster conversion for the state vehicle fleet.
On the distribution side, Cato Gas & Oil has agreed with Greenlight Biofuels to distribute biodiesel produced at Greenlight’s Princess Park facility. Cato has invested $5 million in a new biofuel terminal.

Last year, Smiling Earth Biodiesel proposed a 320 Mgy plant for the Chesapeake Bay area, but the company has not produced financing for the project, which has idled.
Assuming usage of 12 gallons per week per vehicle, the commitment will increase biofuel blend demand by 2.2 million gallons.