Companies plan biodiesel facility for TC

Companies plan biodiesel facility for TC
Daily News - Galveston County - TX,USA
TEXAS CITY — A Houston-based biodiesel company is looking to establish its first production plant near the Port of Texas City. ...

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TEXAS CITY — A Houston-based biodiesel company is looking to establish its first production plant near the Port of Texas City.

Verity Renewable Energy would partner with Oil Tanking in Texas City on a $50 million project, which could open by the end of 2007.

It’s a deal hinging on whether Verity Renewable Energy can afford to set up in Texas City.

“For most of the customers, we’d have to ship the product up the Houston Ship Channel,” said Rance Fromme, Oil Tanking business project manager. “That’s an added expense, and we’re trying to make it feasible.”

If College of the Mainland and the city of Texas City give Oil Tanking tax abatements, it could help ends meet, Fromme said.

Oil Tanking asked both entities for seven-year abatements. If approved, the companies wouldn’t pay taxes on the new improvements.

Verity Renewable Energy has considered other sites, employee John Mafrige said.

But when he spoke to the College of the Mainland board of trustees Monday, he said the company wanted the Texas City site.

“We have to make sure this is going to be economically viable,” he said. “We’re very interested in this site.”

Verity Renewable Energy would build a $50 million plant that produces 60 million gallons of biodiesel fuel per year.

Oil Tanking would spend $10 million to $14 million on building new oil storage tanks and renovating existing ones. It would also demolish seven old tanks and two buildings.

The project would create 13 full-time jobs and about 150 temporary construction jobs, Fromme said.

Oil Tanking bought the plant on Loop 197 South from Dow Chemical two years ago. The proposed site would be the company’s first biodiesel site.

The project will have to get approved by the Texas Commission on Environmental Quality before it can operate.

Oil Tanking is the second-largest bulk storage oil company in the world. Its North American offices are in Houston, Beaumont and Texas City.

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