[Biodiesel News] Calif. investor group buying Louisiana biofuels plant

Calif. investor group buying Louisiana biofuels plant

Reuters - USA

(DMMC.OB: Quote, Profile, Research) on Wednesday said it has purchased Vanguard Synfuels LLC and will ramp up biodiesel production at a Louisiana plant that is ...

 

 

LOS ANGELES, Sept 20 (Reuters) - Diametrics Medical Inc. (DMMC.OB: Quote, Profile, Research) on Wednesday said it has purchased Vanguard Synfuels LLC and will ramp up biodiesel production at a Louisiana plant that is the centerpiece of a $28.5 million deal.

 

Production at the Pollack, Louisiana, plant will increase to 20 million gallons a year from its current capacity of 12 million gallons a year, said Bruce Comer, chief executive officer of Diametrics.

 

"Today's acquisition marks the first step in our long-term strategy to build and acquire biodiesel production facilities," said Comer. "We are excited about the prospects of biodiesel playing a larger role in the overall diesel market. In 2005, biodiesel represented only 75 million gallons of the 60 billion gallon United States diesel market."

 

Diametrics will soon change its name to focus on its new emphasis on biodiesel production, Comer said. Diametrics plans to build several new greenfield plants and bought the Louisiana plant in order to enter the business now, Comer said.

 

Opening a new greenfield plant would take more than two years for Diametrics to accomplish, he said.

 

Comer said Diametrics plans to be one of the biggest biodiesel producers in the United States.

 

The Pollack plant was retrofitted by Vanguard to make biodiesel. Comer said its former owner-operators invested their own money in the plant and will continue to operate the plant for Diametrics.

 

The chief executive officer of Vanguard, Darrell Dubroc, will become president and chief operating officer of Diametrics, Comer said.

 

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Posted by Vince to Biodiesel News at 9/21/2006 11:59:00 AM