60 Mgy biodiesel plant in Illinois mothballed; rising costs, uncertain prices to blame

In Illinois, a proposed 60 Mgy biodiesel plant in Quincy has been delayed due to rising construction costs, and uncertainty over feedstock and biodiesel prices. The $77 million project had been proposed by America’s Renewable Energy, and received its construction permit in July 2007.

The shutdown continued a trend which has affected at least ten biodiesel plants worldwide, including the nearby Freedom Fuels biodiesel plant in Mason City . Grainnet.com reported in the fall on two plant shutdowns in Pennsylvania, where state production has dropped to 5% of capacity.
The Illinois biodiesel industry, cited by BBI International as the third biggest biodiesel producing state, with 199 Mgy in actual or planned capacity, has been beset by high soybean oil prices. Recently, construction was halted at the North Prairie Productions biodiesel plant in Illinois owing to high soybean oil prices. The company is planning a strategic review before potentially resuming construction efforts.

However, Nova Biosource Fuels announced in January that it had obtained a $41 million senior secured credit facility with WestLB AG, including a $36 million construction loan and $5 million in working capital. The funds will be used to complete the company’s 60 Mgy biodiesel plant in Seneca, Illinois. The plant is scheduled to be complete by summer 2008.

Free Subscription to the Daily Biofuels Digest e-newsletter

Related Stories

Stepan Co. reports 49 percent fall in earnings, blames rising soybean oil costs

In Illinois, Stepan Co. reported a 49 percent fall in earnings, to $3.1 million or 31 cents per share, citing the impact of rising soybean oil prices on the the company’s biodiesel operations....

Today in Biofuels Opinion: “People who blame high food prices on US policies…are flat out wrong” says DOA Secretary; Tyson CEO, Mad Money’s Jim Cramer crusade against ethanol

A release by Poet quotes U.S. Secretary of Agriculture Ed Schafer:  "Secretary Schafer said only about 25 percent of the corn crop goes to make ethanol and that the forces driving rising prices in ...

Illinois biodiesel plant halts construction, citing high soybean oil prices

In Illinois, construction was halted at the North Prairie Productions biodiesel plant owing to high soybean oil prices. The company is planning a strategic review before potentially resuming construct...

Construction firms file $20 million in liens against Central Illinois Energy as ethanol shakeout continues

In Illinois, construction firms filed $20 million in mechanic's liens against Central Illinois Energy, which owns the Canton, IL ethanol plant. The liens were filed after non-payment of construction a...

Illinois to require labeling of B6 to B20 blended biodiesel; move to increase biodiesel awareness

In Illinois, a state law will go into effect July 1, requiring labeling of all pumps selling B6 to B20 blended biodiesel. The move is supported by the Illinois Soybean Association to promote awarenes...

Food riots break out in Mauritania; rising food, transport costs blamed

In Mauritania, one person was killed and several injured when food riots broke out in several provinces. Protesters were demonstrating over rising food prices, and an 18-year old was shot in Kansoaa b...