March 10, 2006

US state of Indiana to have world's largest biodiesel plant

Louis Dreyfus Agriculture Industries, LLC has announced plans to build the world's largest biodiesel plant in the US state of Indianna. The combined 50-million bushel a year soybean processing plant and biodiesel production facility will be built in two phases.

The first will be a 50-million bushel a year soybean processing plant, and the second phase will be the biodiesel production facility.

Indiana Governor Mitch Daniels said that 9 alternative fuel plants have sprung up in the state in just one year, adding that the agricultural sector's revival would be proof that the state is in the midst of an economic comeback. 

Two other biodiesel and six ethanol plants are currently under construction in the state.

According to the Indiana Soybean Board, the facility will be one of the world's first biodiesel production plants to be fully integrated with a soybean processing plant. About 260,000 tonnes of soyoil from the plant will be used each year for biodiesel production, and one million tonnes of soymeal will be produced for the livestock and poultry industry. The plant will produce more than 80 million gallons of biofuels a year.

Chris Novak, executive director of the Indiana Soybean Board said soybean farmers will greatly benefit from the plant because they will be able to sell their soybeans locally and receive a better price due to low transportation costs.

Cattle farmers would also benefit from the locally produced soybean meal from the plant.

Novak said one of the challenges in promoting biodiesel use has been the inability to guarantee a readily available supply to end-users. With commitment from the company and the government, he is confident that the state will become the  'Texas of biofuels for the US'.