40 Mgy Paseo-Cargill biodiesel plant commences operations

May 16, 2008

In Missouri, Paseo-Cargill Energy has commenced operations at its 40 Mgy, $40 million biodiesel plant in Kansas City. The ownership said that the company is pursuing BQ-900 certification for its biodiesel product. The plant is owned by a joint venture between Paseo Biofuels, Cargill and the Missouri Soybean Association.

Cargill canceled plans recently to construct a 100 Mgy corn ethanol plant near Topeka, citing tough economic conditions. The proposed plant had been in the permitting stage with no construction yet underway.

Emerald Renewable Energy, a Cargill subsidiary, had run into tough opposition for its proposed 100 Mgy ethanol plant in Shawnee County. Nearly all 29 speakers at a public hearing opposed the plant, which would release 300 to 400 tons of emissions per year, equivalent to the emissions of 50-70 cars. The proposed plant would also have produced 330,000 tons of distillery grains, use 1.2 million gallons of water per day, and create 40 jobs.

Cargill continues to expand its biofuels capabilities, despite the step-back from corn ethanol capacity expansion. Monsanto and Cargill have joint ventured in a company called Renessen that will extract corn oil from corn kernels prior to conversion to ethanol. The Eddyville-based company said that the process will improve cycle time for ethanol production, produce a superior brand of distiller’s grains, and produce a corn oil product that will be refined by Cargill for use in food products. The livestock feed will be branded Epro for cattle and Ecorn for hogs.

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Written by Jim Lane · Filed Under Producer News