The Department of Agriculture this week said two biodiesel plans are making final preparations to produce their products -- Keystone BioFuels in Shiremanstown and Agra Biofuels LLC in Middletown.

Keystone has converted the former Quaker Oats factory in Shiremanstown to produce 1 million gallons of biodiesel a year.

The $2 million facility, built with Hawaii-based Pacific Biodiesel as a strategic partner, will use virgin soy oil originating mostly from Pennsylvania farmers as feedstock.

The plant has existing rail access, but most of the product is expected to be sold locally to Independence Biofuels Inc., which along with affiliated heating oil marketer Worley & Obetz, opened a 30,000 gal/day in-line blending system for direct blending of biodiesel with heating oil. The system was set up at the Highspire terminal near Middletown on the Buckeye Pipeline.

Currently, Independence Biofuels brings in the equivalent of about 1 million gal/yr of biodiesel from out-of-state producers as far away as Iowa to fulfill its biodiesel needs.

Agra Biofuels LLC anticipates its new Middletown plant should be up and running this month with a capacity to produce about 3 million gallons per year.

These and other Pennsylvania projects are expected to bring online enough capacity to produce 40 million gallons of biodiesel fuel a year by the end of 2006, according to the Department of Environmental Protection.

1/6/2006