Cargill and Missouri Soybean Association Plan Biodiesel Facility

Kansas City plant will produce 40 million gallons of biodiesel annually.

Cargill and the Missouri Soybean Association (MSA) announced Wednesday plans for a 40 million gallon per year biodiesel plant and 30 million pound food grade glycerin refinery adjacent to Cargill’s existing soybean processing facility in Kansas City.

The facility will be jointly owned by Cargill and Paseo Biofuels, LLC, a new entity to be formed by Missouri soybean farmers and MSA. Pending regulatory and other approvals, construction on the new facility is planned to start this fall, with biodiesel production projected for the summer of 2007.

Requiring $24 million in equity, this is the largest biodiesel initiative currently proposed in Missouri and will be designed to meet the requirements for BQ-9000 Accredited Producer certification, the highest-level quality standard. The facility would use soybean oil as the primary feedstock. The glycerin refinery would produce USP-grade 99.7 percent purity, kosher-certified glycerin.

The state of Missouri continues to incorporate renewable fuels with the goal of reducing dependence on foreign oil and adding to the domestic supply of fuel. Tax incentives have been established for biodiesel blenders, some of which are suppliers for many state vehicles and school bus fleets. More than 50 percent of Missouri farmers use biodiesel in their operations as a way to add value to their commodity.

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