[Biodiesel News] Biodiesel plant coming to Swanton

Biodiesel plant coming to Swanton
Franklin County Courier - Enosburg,Vermont,USA... industry support for the project, Swanton now appears destined to become home to New England’s largest producer of environmentally-friendly biodiesel fuel. ...

SWANTON: With an outpouring of a wide range of state economic development, political and local industry support for the project, Swanton now appears destined to become home to New England’s largest producer of environmentally-friendly biodiesel fuel.


Barring any unforeseen changes and permitting barriers, Biocardel Vermont Inc. — a partnership of two Canadian firms, Biocardel Inc. and Guilmax Inc. — hopes to be producing pure biodiesel in Swanton by January 2007.

Initially the plant would produce up to four million gallons of the fuel at a leased building in the Swanton Industrial Park. Within three years annual production would be expected to reach eight million gallons. The plant is projected to create 21 new jobs over that period.

The plant would be the largest such facility in New England. According to information from the National Biodiesel Board, the plant would be one of only 65 biofuel production plants in the United States, and would produce more fuel than all but 25 of those.

Biocardel Inc. also runs a similar biodiesel production plant in New Brunswick, Canada.

Tim Smith, executive director of the Franklin County Industrial Development Corp., has worked closely with the firm over the summer and said minor details are still being hammered out, such as labor and industry permits and the negotiation of a lease.

With the $534,522 in tax credits authorized by the Vermont Economic Progress Council late last week and a $645,355 loan recently approved by the Vermont Economic Development Authority, the plans have solidified considerably.

“It’s not guaranteed yet, but we’re very optimistic,” Smith said.

Smith said the company was attracted to the Swanton area for several reasons.

“They liked the Vermont image, in terms of being a ‘green’ state,” Smith said. “And they liked the fact that it is a growing market.”

Indeed, the use of biofuels has grown dramatically in Vermont. In 2003 about 9,000 gallons of biodiesel were sold in the state, according to Netaka White, the executive director of the Vermont Biofuels Association. Through the next two years this number jumped to 55,000 gallons in 2004 and again to 275,000 gallons in 2005. White said the 2006 figure could exceed one million gallons sold. Such increases are only expected to continue in coming years.

“The indication is that Vermont will really be in a position to use this fuel,” White said. Recent years have seen a fast growing list of high-profile biodiesel users, including Burlington International Airport, the University of Vermont, the Vermont Law School, several state ski resorts, and Green Mountain Power, not to mention increasing use and small-scale production on many Vermont farms.

In Franklin County, biodiesel fuel for vehicles also recently became available at a local gas station, On The Run, in St. Albans Town. At just under $3 per gallon, the biofuel is only four cents more than regular diesel at the station. There are only 10 such stations across the state, White said.

The Swanton plant has received broad support politically. After last week’s tax incentives announcement, Gov. Jim Douglas sat down with company representatives. In August, Sens. Sara Kittell, Don Collins and Vince Illuzzi, along with Sen. President Pro-Tem Peter Welch, sent a letter to the company offering their assistance to “make this a reality.”

Biodiesel is a clean-burning alternative fuel used for vehicles and heating that can be produced domestically from renewable resources, largely corn and soybean oil. Biodiesel contains no petroleum products, though it is most often blended with regular diesel fuel. The fuel results in substantial reductions in a range of emissions and can be used in existing diesel engines with few or no modifications.

“It’s a great project, and it ties in well with what’s going on in the county,” Smith said of the Swanton plant. There may eventually be an opportunity for interested local farmers to supply soybeans and other raw material for the plant as well.

While the new plant would help bolster a growing, environmentally sound market across the state, it will also help Swanton recover from recent economic blows.

“Considering the loss of jobs in the past ... any employment opportunity for our area is a wonderful opportunity,” said Swanton Village Administrator George Lague.

Swanton lost 70 local jobs when Lucille Farms closed in October 2005. Lucille Farms had been the second largest buyer of milk from the St. Albans Cooperative Creamery.

In August, a sister company to Enosburg Falls’ Franklin Foods known as Via Cheese announced they had purchased that site with plans to begin production of mozzarella and other Italian cheeses in October. Company officials estimated at that time they would initially employ 20-25 people at the facility, but expected that number to increase over time.

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Posted by Vince to Biodiesel News at 9/18/2006 07:45:00 AM