Biodiesel plant goes up for sale
Northeast Mississippi Daily Journal - Tupelo,MS,USA
By Sandi P. Beason. NETTLETON – Biodiesel of Mississippi could soon reopen under new ownership if all goes well in a bankruptcy sale. ...
NETTLETON – Biodiesel of Mississippi could soon reopen under new ownership if all goes well in a bankruptcy sale.
The refinery, which converts soybean oil into biodiesel fuel, filed Chapter 11 bankruptcy and closed in February. Now, Maryland-based Equity Partners Inc. is marketing the company and could have a buyer in November.
“Over the next few weeks, we will show what it can do,” said Ken Mann, president of Equity Partners. “We have quite a large number of groups, and they’re talking about a lot of dates for site visits. We will sell to whatever is the highest and best offer we get.”
After the plant’s closing, the Mississippi Department of Environmental Quality gave its approval to operate again, pending a few changes. One of those was to seal off a concrete retaining wall, Mann said. With that work completed, the plant could begin operations this week.
“It will initially operate under two customer contracts at 20,000 gallons a day,” he said. “We hope to be up to 60,000 gallons a day quickly, as it gets new contracts.”
Five employees on hand
Five employees are there now, but that could increase along with production.
“I want to see this in the hands of a stable company that can get it up to its full potential,” said Mayor Brandon Presley. “I hope they find a buyer and get it up and operating, as quickly as possible.”
According to Mann, BMI will select a successful bidder in late November or early December and complete a sale of the refinery, free and clear of any liens and encumbrances, through a Chapter 11 bankruptcy sale.
“We do have some interested prospects,” he said. “It’s hard to say how interested they are until we show them the refinery operating.”
BMI has “several million dollars’ worth” of debt, but because it’s a Chapter 11 bankruptcy, that won’t dictate the selling price, he said. Funds from the sale will be distributed by the court.
Biodiesel is an environmentally friendly, organic fuel, and is the fastest growing alternative fuel in the United States. It can be used in any proportion, up to 100%, with petroleum diesel fuel, requires little to no engine modification and maintains payload and range capacities.
It is biodegradable, nontoxic, and essentially free of sulfur and other aromatics.
BMI ceased production as a result of a disagreement with a financial backer. The refinery sits on 3.9 acres near U.S. Highway 45 in Nettleton.
Iowa railroad receives federal loan
DesMoinesRegister.com - Des Moines,IA,USA
... The railroad is expected to grow rapidly in the next few years as several planned ethanol and biodiesel plants go into production. ...
A 163-mile railroad in northeast Iowa was awarded a $25.5 million federal loan to improve its operations.
The Iowa Northern Railway, which operates from Manly in north central Iowa to Cedar Rapids in eastern Iowa, will get the loan from the U.S. Department of Transportation.
The money is part of $55 million the company plans to spend over the next six years to upgrade. The railroad is expected to grow rapidly in the next few years as several planned ethanol and biodiesel plants go into production.
The rail line already serves an ethanol plant in Fairbank. Two other sites along the rail line are planned in addition to up to six biodiesel plants.
"We expect that in five years, the Iowa Northern will be the largest single originator of biofuels in North America," said President Dan Sabin.
Groundbreaking is planned for Friday in Manly for the state's first independent biofuels loading, storage and trading terminal. Iowa Northern plans to build a 1,000-car facility at the terminal.
The rail line also is planning a 1,000-car rail yard in Butler County and expanded rail sidings in Palo, Waterloo and Nora Springs.
This year, the Iowa Northern Railway is shipping around 42,000 carloads. That's projected to grow to 120,000 carloads in five years.
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