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Biodiesel

13 March 2006

Louis Dreyfus Agriculture Industries LLC plans to build the world’s largest biodiesel plant near Claypool, IN, announced the Indiana Governor. The plant will utilize Indiana soybeans. With this facility, two other biodiesel and six ethanol plants currently under construction, Indiana will become a leading producer in the biofuels industry.

The state of Indiana has reached an agreement with Louis Dreyfus to build the project in two phases. The first will be a 50 million bushel per year soybean processing plant, and the second phase will be the biodiesel production facility. About 260,000 metric tons of soybean oil from the plant will be used each year for biodiesel production. The biodiesel plant will produce up to 250,000 gallons of biodiesel per day, or more than 80 million gallons (300,000 m3) per year.

Indiana is the fifth largest corn state and the fourth largest soybean state in the USA. With the facilities under construction, the state will produce an additional 400 million gallons of ethanol annually and 95 million gallons of biodiesel (including Louis Dreyfus). Indiana’s goal is to produce a combined 1 billion gallons of ethanol and biodiesel annually.

The state offered economic development incentives, including up to $95,000 in training grants, $137,500 in infrastructure assistance to the local community, and up to $5.295 million in tax credits based on anticipated employment and capital investment levels.

Worldwide biodiesel production is estimated at about three million tons per annum, with Western Europe being the leading market, and increasing production occurring in the USA and Asia. Most of today’s biodiesel production in the USA comes from Cincinnati, Ohio or Ralston, Iowa.

Source: Indiana Governor