Green Earth Biofuel Waits on Tax Credit Decision Before Starting Kentucky Biodiesel Plant

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Researched by Industrial Info Resources (Sugar Land, Texas)--Privately held biodiesel startup Green Earth Biofuel of Kentucky Incorporated (Irvine, Kentucky) is 95% complete with construction of the company's new biodiesel plant in Irvine. Green Earth is waiting to see if the $1-per-gallon tax credit will be renewed by the federal government before committing to starting full production.

The project has experienced some minor setbacks. Green Earth is anticipating starting up the plant between October and December of this year. The plant began construction in mid-2006 and was planned to begin production in early April 2010.

Most of the equipment and systems are mechanically complete, and the only item left to complete is to tie in to the truck-loading rack for product delivery.

The first section of the plant, located in an 18,000-square-foot building in Irvine, will produce 25 million gallons of ASTM on-spec biodiesel in a variety of B5 and B20 blends during the first 12 months of production. Future plans involve leasing an additional 25,000 square feet of county-owned buildings in the development to add another 25 million-gallon-per-year section in the second year of operations, and a third 25 million-gallon-per-year section in year three. Expanding the facility beyond the initial phase hinges on the reinstatement of the $1-per-gallon production tax credit that expired at the beginning of the year.

The company is also investigating utilizing heterotrophic algae to produce algal oil feedstocks that can be refined into renewable diesel. Markets for the end product include power plant fuel, military vehicles and local transit authorities.

The plant is located at 523 Kirkland Avenue in Irvine, about 35 miles southeast of Lexington and has access to Kentucky River.

Industrial Info's Ethanol Database provides a comprehensive outline of all current development activities in the emerging alternative fuels market. This database covers 177 ethanol plants in operation and 530 plants under development. It also covers 145 operational biodiesel plants and 245 biodiesel plants under development.

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