[Biodiesel News] Nova Biosource planning Illinois plant

Nova Biosource planning Illinois plant

Biodiesel Magazine - Grand Forks,ND,USA

Nova Biosource Fuels Inc. is making headway with its ambitious biodiesel business plan. ... for Nova’s proposed 60 MMgy biodiesel plant in Seneca, Ill. ...

 

Nova Biosource Fuels Inc. is making headway with its ambitious biodiesel business plan. The Houston-based company announced it has signed a biodiesel sales agreement with ConAgra Trade Group Inc. for Nova’s proposed 60 MMgy biodiesel plant in Seneca, Ill.

 

Nova, which plans to build up to seven biodiesel plants within the next three years, has initiated engineering and procurement for the Seneca plant, according to the company.

 

Per the agreement, ConAgra Trade Group will provide selling and outbound logistics services for the facility. It’s a similar agreement to the one announced in late July for another proposed Nova biodiesel plant in Oklahoma. Specifics of that project have not yet been released.

 

“We selected ConAgra Trade Group based on its experience and capabilities in commodity trading, marketing, logistics and risk management services that will support our biodiesel production efforts,” said Nova Chairman and CEO Kenneth Hern.

 

Nova also entered into a 10-year feedstock supply agreement with Lipid Logistics LLC, an affiliate of Joliet, Ill.-based Kaluzny Brothers Inc., which is a rendering services and products supplier. Another Kaluzny Brothers affiliate, KBI Energy, announced in late June that it agreed to provide $4 million in project equity financing for the Seneca facility.

 

The Seneca plant’s location is a 54-acre parcel in the Shipyard Industrial Park of Seneca, Ill. The park provides rail, barge and highway access for the facility. The plant is expected to be operational in mid-2007, according to Nova.

 

Nova recently completed construction on a 10 MMgy biodiesel plant in Clinton, Iowa. Clinton County Bio Energy started producing initial batches of biodiesel earlier this month. Nova is also building plants in De Forest, Wis., and Greenville, Miss. The company plans to construct and operate up to seven biodiesel plants with capacities ranging from 20 MMgy to 60 MMgy.  

 

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Posted by Vince to Biodiesel News at 9/21/2006 05:30:00 AM