American Biofuels Targeting Quadrupling its Biodiesel Capacity to 40MGPY in 2006

27 January 2006

American Biofuels (ABF) plans to quadruple its soy biodiesel production capacity to 40 million gallons per year (mgpy) in 2006.

The company is planning a new 20-mgpy East Coast facility to supply New York State and surrounding states and expects this facility to be in production by late 2006. ABF is also expanding its existing production biodiesel plant in Bakersfield, California to 20 mgpy.

ABF originally expected to complete an expansion of the Bakersfield plant from 5- to 10 mgpy by January. The company decided, however, to increase certain designs to accommodate even further expansion later this year. ABF is planning to commence further expansion to increase the production capacity beyond 10-million gallons per year to 20 mgpy, with an estimated completion date by late 2006.

Should ABF realize its plans, it would have one of the largest biodiesel production capacities in the US. Total biodiesel production capacity in the US is about 354 million gallons, according to the National Biodiesel Board. Actual production in the US was about 66 million gallons in 2005.