[Biodiesel News] Bunge Creates Biodiesel Joint Venture

Bunge Creates Biodiesel Joint Venture

Houston Chronicle - United States

... processor and fertilizer manufacturer, on Thursday said it has partnered with a private equity firm to create a joint venture biodiesel company, Biofuels ...

 

NEW YORK — Bermuda-based Bunge Ltd., a soybean processor and fertilizer manufacturer, on Thursday said it has partnered with a private equity firm to create a joint venture biodiesel company, Biofuels Company of America LLC.

 

Financial terms of the venture with Memphis, Tenn.-based Biodiesel Investment Group LLC were not disclosed.

 

Bunge said the venture plans to build a biodiesel plant with capacity to produce 45 million gallons per year of the alternative fuel, which can be made from soybean and other vegetable oils. Biodiesel is typically blended with traditional diesel to create a cleaner burning fuel.

 

The plant will be located next to Bunge's soybean processing facility in Danville, Ill., the company said. Construction is under way, and operations are expected to start up in the first quarter of 2008.

 

"Bunge will be able to provide 100 percent of the feedstock for the new plant as well provide risk management and other services to the new facility," said Larry Clarke, general manager of Bunge Oilseed Processing.

 

Producing 45 million gallons of biodiesel will use the equivalent of 30 million bushels of soybeans.

 

Shares of Bunge fell 82 cents to $57.83 in afternoon trading on the New York Stock Exchange.

 

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Posted by Vince to Biodiesel News at 9/22/2006 05:43:00 AM