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Biodiesel Deal

Dallas Business Journal. Biodiesel Industries (Santa Barbara, CA) will begin construction on a 3,000,000 gallon biodiesel plant based at the landfill of the city of Denton, Tx. The $700,000 plant will be powered in large part by methane gas from the landfill.

The city of Denton is investing $670,000 in plant equipment, which it will then lease back to Biodiesel Industries. The city will purchase 10% of the output—300,000 gallons per year—for use in its diesel fleet.

Biodiesel Industries uses a modular design, with the full-scale Modular Production Unit (MPU) capable of the 3 million gallon output targeted for Denton. The company can aggregate MPUs for higher output, as it did with a 12 million gallon facility in Australia, or deploy smaller reactors that can be towed by a pickup (one presumably burning biodiesel).

The modular design approach seems similar to the one taken by D1 (earlier post). The ability to deploy a low-cost, modular unit makes a more distributed model of fuel production possible, and with it, the type of win-win financial deal that BI crafted with Denton.

Comments

Dave Manelski

This Denton plant is dwarfed by a huge Houston facility going in soon that will produce 30 million gallons:

http://houston.bizjournals.com/houston/stories/2004/10/18/story1.html

Mike

That is huge! At the end of 2003, there were 12 US biodiesel refiners with a combined capacity of 90 million gallons per year (according to the USDA). Texas BioDiesel looks like they aim to increase that by at least a third. (More like by two-thirds, because they have another similar plant planned.)

I’m curious, and if anyone knows, please pitch in. The Biodiesel Industries plant for Denton will produce 3 million gallons per year at a plant cost of $700,000. The Texas BioDiesel plant Dave points to will produce 30 million gallons at a plant cost of $38 million. 10 times the output, 54 times the cost. Why? Is it the cost of the real estate? A difference in the process and bioreactors required?

Jim

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From what I have read in you current and archival portion, in my book, your site ranks right there amount the top for informing the business and public sector.

Thanks you for doing what it is you do...

Jim A.

Jeffery Haas

When will this biodiesel fuel start showing up at our fuel stations? More importantly, when will our American government start allowing small and efficient diesel cars and light trucks into the country, as it is obvious that you cannot get anything like that from our domestic mfrs.
The only diesel choices in the USA at this time are the giant macho work trucks or a Mercedes.
Finding a small Toyota Diesel pickup is like finding a married Catholic priest, they just aren't available in the States.

WHY?

GW

You could also buy a VW TDI. Under warranty they will allow 5% biodiesel. Why only 5% is beyond me, less emissions/ better lubricity/ quieter. What is the down side? I live just outside Denton and if the cost is reasonable I'll buy it.

chen m h

biodiesel from modular plant. we are interested in the grade of biodiesel produced by this plant. whether it can be used in diesel powered engines of cars and industrial factories directly without necessity of modification or in combination with other biofuels.

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