American Renewable Fuels delays 75 Mgy tallow biodiesel project in New Mexico, citing financing and feedstock concerns

March 12, 2008

In New Mexico, American Renewable Fuels said that it will delay its proposed 75 Mgy tallow biodiesel plant, citing conditions in financial markets and feedstock prices. The company says that it expects to commence construction by July.

Recently, construction has halted on the 15 Mgy Clovis Biodiesel project due to financing issues. The $18 million plant was 80 percent complete and scheduled to be finished this month, but management now says that completion is six to eight months away. Project owners Ares Blue Sun blamed the run-up on soy prices and Blue Sun’s inability to close a public offering for the delay.

Earlier this year, ConAgra announced that it was canceling its proposed 100 Mgy corn ethanol project in Clovis due to depressed economic conditions and rising building costs. The $200 million project also ran into resident opposition because the plant site bordered the town.

The ConAgra plant had been scheduled for an additional hearing by the state Environmental Improvement Board. The Environment Department previously approved the plant, but local residents objected to the location of the plant on the edge of town. The EIB ordered the hearing after it was disclosed that notices to residents did not properly disclose the distance from the plant to the town limits. The additional hearing will be held before February.

Abengoa operates a 27 Mgy corn ethanol facility in the area which last year it put up for sale, saying it wanted to concentrate on its larger facilities and cellulosic ethanol developments.

$300 million Vision Fuels project in Iowa nixed; company’ 3rd cancellation due to financing

In Iowa, the $300 million Vision Fuel corn ethanol project in Des Moines has been cancelled, citing financing difficulties in the present environment. The city had provided Vision with several extensi...

First commercial biodiesel plant in New Mexico on track to open in January 2008

The first commercial-scale biodiesel plant in New Mexico is schedule to open in January 2008. The Clovis Biodiesel facility will produce 15 million gallons per year of biodiesel from canola and soybea...

Cow tallow as biodiesel feedstock: Brazilian plant opens

Cattle Network reports that a new biodiesel project in Brazil will use cow tallow as a feedstock. The first cow tallow biodiesel plant opened in Brazil in 2005. Tallow, which cost around 30% less than...

Dalriada Meat receives South Australian government grant for tallow-based biodiesel

In Australia, Dalriada Meat has received $100,000 from the South Australian government for its proposed $5.8 million tallow-based biodiesel plant in Keith. The tallow-based biodiesel industry has h...

Today in Biofuels: Euro Parliament wavering on E10 target; General Motors hybrid chief calls global warming “a crock of s—”; list of 118 US ethanol projects

Top Story:In Europe, the rapporteur in the European Parliament for the European Unionâ€™s Fuel Quality Directive said that the EU goal of 10% of all transport fuels coming from biofuels is in tro...

Liberty Renewable says proposed 121 Mgy plant in Michigan still a go, despite financing woes

In Michigan, Liberty Renewable Fuels denied rumors that the 121 Mgy corn ethanol plant project would be canceled, and said that it had stopped construction to raise more capital for the $233 million f...

Written by Jim Lane · Filed Under Producer News, The Daily Biofuel Summary