October 11, 2012


Cargill, Paseo Biofuels to expand biodiesel production



The joint venture of Cargill Inc. and Paseo Biofuels has planned an expansion of its biodiesel plant in Kansas City, Missouri which will increase capacity by 40%.


The plant uses soyoil as its primary feedstock, according to the company. The facility produces 40 million gallons of biodiesel and 30 million pounds of food-grade glycerin annually. Cargill expects the expansion to be finished by March 2013.

"Our partnership with Paseo has gone very well over last four years. Together, we have built an excellent operation that serves many of the major petroleum retailers in the US," said Mark Stonacek, Cargill Grain and Oilseed Supply Chain North America Business Unit leader.

The facility opened in 2008, but the facilities began an equity drive in 2006. More than 650 agricultural producers in Missouri purchased shares in Paseo Biofuels, LLC, which formed a joint venture with Cargill. It is located near the Paseo Bridge in Kansas City.

"The business model has been ideal. Co-locating the biodiesel plant next to a soy crushing facility reduces cost, saves time and money while working with three great partners," said Dale R. Ludwig, executive director/chief executive officer, Missouri Soy Association.

"I am pleased to see Missouri businesses and our agricultural producers coming together to make a significant capital investment to create new opportunities in the Show-Me State," Missouri Governor Jay Nixon said. "This is a partnership that is growing by expanding markets for our farmers and farm families and making renewable, North American energy more accessible. We are glad to have them grow in Missouri."

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