Over $1.5 Billion in Alternative Fuel Projects Planned in Texas

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Reported by Industrial Info Resources (Sugar Land, Texas). Texas is currently at an energy crossroads. For many years, excess energy production from Texas fueled a sizable portion of the national economy. During the past two decades, however, Texas' steadily increasing consumption has finally caught up with waning energy production. The biofuels market in Texas has been slow to develop, considering its agricultural base and energy-related companies that call the state home. Currently, there are only three biofuel refineries operating in the state, however, the landscape is changing and the race in on to see who will be the first to the biofuel finish line.

The biodiesel market seems to be outpacing ethanol production in Texas, and biodiesel, in the end, may prove to be the better renewable fuel, due to its positive energy balance and waste grease processing attributes. Existing biodiesel producers include Dow Halterman on the Houston Ship Channel, Safefuels near The Woodlands, and Biodiesel Industries of Denton.

Ten additional projects are in the pre-construction phase and have the potential to add some 1.6 billion gallons of capacity to the biodiesel market. Projects include Texas Biodiesel Corporation in Louise (30 MM gal/yr); Energy Conversion Corporation in Friona (14 MM gal/yr); Natural Fuel and Energy in Houston (36 MM gal/yr); Two plants by TexCom in Houston and Corpus Christi (both 30 MM gal/yr); Dynoil in Houston (1.5 billion gal/yr), and National Biofuels in Palestine (20 MM gal/yr).

Current projects already under construction include Pacific Biodiesel in Hillsboro (2 MM gal/yr); GeoGreen Fuels in Gonzales (3 MM gal/yr) and Galveston Bay Biodiesel in Galveston (20 MM gal/yr).

Eight ethanol projects under development include Levelland Hockley County Coop in Levelland (30 MM gal/yr); Central Texas Ag Development in Cameron (40 MM gal/yr); Panhandle Energies in Sunray (40 MM gal/yr); Scoular Company in Plainview (100 MM gal/yr), and Borger Biofuels in Borger (100 MM gal/yr).

Projects under construction include White Energy/Hereford Ethanol in Herford (100 MM gal/yr), which just began construction this week; The Panda Group in Hereford (100 MM gal/yr), and Panhandle Energies second plant in Dumas (40 MM gal/yr).

Jay Brunson, Industrial Info’s Vice President of the Syn Fuels Group adds, “Close to $1.5 billion in capital is expected to be spent on new and developing biofuels projects in Texas, with more popping up on the radar everyday. Once the last of this batch of projects goes into operation by mid-2008, Texas will have the capacity of producing approximately 1.6 billion gallons of biodiesel and 550 million gallons of ethanol annually.”

Industrial Info's Ethanol Production Database provides a comprehensive outline of all current development activities in the emerging synthetic fuels market. This database covers 123 ethanol plants currently in operation and 234 plants under development. It also covers fifteen operational biodiesel plants and 41 biodiesel plants under development.

Industrial Info Resources (IIR) is a Marketing Information Service company that has been doing business for over 23 years. IIR is respected as the leader in providing comprehensive market intelligence pertaining to the industrial processing, heavy manufacturing, and energy-related industries throughout the world.