The Race is on to Build Michigan’s First Commercial Scale Biodiesel Plant

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Researched by Industrialinfo.com (Industrial Information Resources, Incorporated; Houston, Texas). When you think of Michigan, names like the big three automakers are the first thing to come to mind, not the fuel that powers the products they manufacture. However, mandates introduced by Senator Gerald Van Woerkom on March 17, 2005, will require that diesel fuel sold in Michigan include at least two percent biodiesel beginning in 2007. This mandate, if passed, could requrie that produciton facilities be constructed within the state.

Two new players in the industry have emerged as the front runners to build biodiesel plants in Mighigan spurring the race between Biodiesel Industries, Incorporated (Marathon, Florida) and Michigan Biodiesel, LLC (Eaton Rapids, Michigan) to see who will be the first to get a shovel in the ground and complete construction of a full commercial production plant.

Biodiesel Industries, Incorporated, a privatley held established biodiesel player since 2000, has a standard modular production unit that has a capacility of producing three million gallons per year of the renewable fuel and is looking at establishing plants all over the world. So, where else would they look to build a plant other than the Motor City. Plans are being solidified to start construction soon on the estimated $3 million moduar continuous biodiesel plant. The company is partnering with Daimler Chrysler and non-profit altenative energy developer, NextEnergy (Detriot, Michingan). Construction is scheduled to begin by the spring of 2006 and be operational by year’s end.

Michigan Biodiesel, LLC is a new private investor group that has chosen a site in Bangor, Michigan to build their plant. The groupis a bit more aggressive and plans to construct a five million gallon per year plant. Construction of this plant is scheduled to begin by late March or early April of 2006 and begin operations four to six months later. Parish Corporation (Lansing, Michigan) has beed identified as the general contractor for this estimated $7 million project.

Development of these two new locations is great news for the emerging biodiesel industry. Industrialinfo.com has been tracking developments in the industry since 1999, when just a handful of operational plants existed and very few new locations were under development.

Today, there are over a dozen commercial scale biodiesel plants in operation in the United States and 38 new biodiesel plant sites are underdevelopment.

Industrialinfo.com'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 17 biodiesel plants and 38 biodiesel plants underdevelopment.

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