60 Mgy biodiesel plant in Illinois mothballed; rising costs, uncertain prices to blame

February 18, 2008

In Illinois, a proposed 60 Mgy biodiesel plant in Quincy has been delayed due to rising construction costs, and uncertainty over feedstock and biodiesel prices. The $77 million project had been proposed by America’s Renewable Energy, and received its construction permit in July 2007.

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.
The Illinois biodiesel industry, cited by BBI International as the third biggest biodiesel producing state, with 199 Mgy in actual or planned capacity, has 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.

However, Nova Biosource Fuels announced in January that it had obtained 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.

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Written by Jim Lane · Filed Under Producer News