[Biodiesel News] Memphis biodiesel plant begins production

Memphis biodiesel plant begins production
Biodiesel Magazine - Grand Forks,ND,USA
by Dave Nilles. An idle cotton oil mill in a downtown redevelopment zone in Memphis, Tenn., is now home to a biodiesel producer. ...

An idle cotton oil mill in a downtown redevelopment zone in Memphis, Tenn., is now home to a biodiesel producer. Milagro Biofuels of Memphis LLC produced its first biodiesel Sept. 11, according to President Diane Mulloy.

The 5 MMgy was expected to start-up in late August, but minor start-up glitches pushed production to this week. Mulloy said test batches have been conducted and samples sent to the U.S. EPA for certification. “I’m hoping that process is quick,” she told BiodieselMagazine.com. “We hope to sell biodiesel by the end of September.”

Greenline Industries began building the modular biodiesel facility off-site in March. The building, which required substantial interior modifications, is listed on the National Register of Historic Places, Mulloy said. New concrete floors were poured and minor exterior changes were made to allow for truck entry. Mulloy said the plant is completely enclosed, meaning inbound and outbound trucks will enter the facility for loading and unloading.

Milagro Biofuels will use 100 percent refined virgin soy oil for feedstock. The initial barge load was floated on the Mississippi River from Owensboro Grain in Owensboro, Ken. Owensboro is in the process of constructing a 50 MMgy biodiesel facility, which is expected to begin producing in mid-2007. Mulloy said other sources will be tapped for feedstock.

While Mulloy said she has received calls from around the country looking to obtain biodiesel, she expects most of the product to be sold and consumed locally. The company is also planning additional facilities, which would likely be located in southern Kentucky or mid-Tennessee.

Milagro will be holding an Oct. 6 grand opening. Mulloy expects a strong contingent of local and state officials. Democratic U.S. Congressman Harold Ford, who is running for U.S. Senate this fall, filmed a portion of a campaign commercial at the facility, according to Mulloy.

“It has really been an exciting process,” Mulloy said. “It has been fun to be part of a new business and emerging industry. The enthusiasm of our employees and partners has been infectious.”

A second biodiesel facility is also being constructed in Memphis. Memphis Biofuels LLC expects to begin production at a 36 MMgy plant in October. The project is permitted for 50 MMgy.

Milagro Biofuels of Memphis LLC
Location: Memphis, Tennessee
Design/builder: Greenline Industries
Capacity: 5 MMgy
Feedstock: soy oil
Biodiesel marketer: Milagro Biofuels
Start of construction: March 2006
Start-up date: September 2006

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Posted by Vince to Biodiesel News at 9/13/2006 06:01:00 AM