Browse > Home / Producer News / 15 Mgy Terra Bioenergy waste fat biodiesel project commences construction in Missouri

15 Mgy Terra Bioenergy waste fat biodiesel project commences construction in Missouri

July 17, 2008

In Missouri, the 15 Mgy Terra Bioenergy waste animal fat biodiesel plant has commenced construction in St. Joseph. The $25 million project is expected to be completed in February.

Missouri background

The Republican gubernatorial primary election campaign heated up recently over biofuels policy, when U.S. Rep. Kenny Hulshof criticized opponent Sarah Steelman’s energy policy, saying “An array of independent analyses debunk the proposals contained in The Steelman Plan, which could result in higher gas prices, job losses, and an enhanced dependence on foreign oil. Until last week, Steelman appeared to recognize the benefits of biofuels and the positive impact they have had on the state’s agriculture economy and the ongoing effort to wean our dependence on foreign oil. Now, in a dramatic about face, she’s proposing the elimination of Missouri’s ethanol mandate.”

In March, the state Senate passed a new measure mandating a B5 or higher blend in all diesel fuel sold in the state. The measure now moves to the House for approval. Missouri, which enacted an E10 mandate in January, would become the sixth state to establish a biodiesel mandate.

Gov. Matt Blunt has been accelerating Missouri to a leadership position in biofuels. Last month, he announced a series of tax incentive proposals designed to promote biofuels. The governor proposed $2 million in tax incentives for gas station owners converting to E85, and tax credits for consumers who buy E85 or a hybrid vehicle.

Missouri’s E10 mandate took effect January 1st. With the new law, Missouri joins Minnesota and Hawaii as the only states mandating E10. Most Missouri stations switched months previously, and the transition as reported to be smooth.

Missouri has a unique feature in its ethanol mandate allowing fuel retailers to switch back to unblended gasoline if the price of ethanol exceeds the price of gas. There are concerns that, if the price of ethanol drops below gas and retailers again sell E10, that they will have co-mingled fuels in their tanks that would bring them below the minimum blending requirement.

On the production side, Missourian ethanol plant development has slowed to a standstill, according to the state’s Department of Natural Resources. After boom conditions in recent years, no new plants have submitted new or revised permit applications since July, and of three plants that had previously received construction permits, none have proceeded to begin construction.

In May, Show Me Ethanol completed raising an additional $6.9 million from private investors and debt, and will use the proceeds to complete its 55 Mgy corn ethanol plant in Carrolton. The new investors will receive 9 percent of the equity for their investment and their investment will be securitized with a lien on the facilities. The plant will produce 176,000 tons of dried distillers grains for livestock feed, and will employ 35 people on its 33 acre site.

The plant ran into difficulties when it was revealed that state Rep. John Quinn, the brother of state Governor Matt Blunt, and the wife of U.S. Rep. Sam Graves are Show Me Ethanol investors. State rules prohibit legislators or their immediate family from becoming investors in plants that receive favorable state tax treatment, and the plant lost $6 million in state incentives because of the ties to lawmakers.


  • Three Missouri corn ethanol project plans advance; 320 Mgy in planned capacity
    • Three Missouri plants are advancing through the planning stage, with a total planned capacity of more than 320 Mgy of corn ethanol. The state of Missouri issued an air permit to Ethanex of SEMO. Th...
  • India’s Naturol Bioenergy commences US, EU exports from 30 Mgy biodiesel plant in Hyderabad
    • In India, Naturol Bioenergy has commenced biodiesel exports from its 30 Mgy facility in Kakinada, Hyderabad. The company said that it is exporting to the US and EU from the $29 million project. Cleanc...
  • 30 Mgy High Plains Bioenergy biodiesel plant commences operations in Oklahoma
    • In Oklahoma, High Plains Bioenergy commenced production at its 30 Mgy biodiesel plant in Guymon. The $40 million project uses multiple feedstocks with a focus on pork fat from its parent company Seabo...
  • Ethanol plant development stalls in Missouri as no new plants proposed, three approved yet to start construction
    • In Missouri, ethanol plant development has slowed to a standstill, indicative of a national trend, according to the state's Department of Natural Resources. After boom conditions in recent years, no n...
  • Canada ethanol plant looks to by-product to gain a competitive edge over corn
    • In Canada, a 15 Mgy wheat ethanol plant expects to improve its viability through the superior quality of its distillers grains. The Terra Grain Fuels plant at Belle Plaine in Saskatchewan says that 90...
  • Oxem Group commences construction on 60 Mgy canola biodiesel plant in Italy
    • In Italy, Oxem Group has commenced construction on a 60 Mgy canola-based biodiesel plant near Pavia, in Lombardy. Oxem will invest $100 million in the project that will utilize feedstock from France, ...

    Written by Jim Lane · Filed Under Producer News 

    Comments

    One Response to “15 Mgy Terra Bioenergy waste fat biodiesel project commences construction in Missouri”

    1. sarah steelman on July 18th, 2008 11:17 am

      [...] independent analyses debunk the proposals contained in The steelman Plan, which could result in highhttp://biofuelsdigest.com/blog2/2008/07/17/15-mgy-terra-bioenergy-waste-fat-biodiesel-project-commen…Read “Steelman makes PR event of gun purchase” at Local News Forum The Associated Press Star can’t [...]

    Got something to say?

    You must be logged in to post a comment.