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World's largest biodiesel plant to be built in Indiana

Agriculture.com Staff 03/09/2006 @ 11:07am

Indiana Governor Mitch Daniels announced yesterday that Louis Dreyfus Agriculture Industries, LLC, plans to build the world's largest biodiesel plant in his state. The combined 50-million bushel per year soybean processing plant and biodiesel production facility will be located near Claypool, Indiana.

The project will be built in two phases. The first will be a 50-million bushel per year soybean processing plant, and the second phase will be the biodiesel production facility.

"If Indiana can do this, think what America can do to work toward energy self-sufficiency," Daniels said. "In just one year, we’re growing from one alternative fuels plant to nine, with more to come. We said our ag sector would be a big part of our economic comeback, and here’s the proof.” Two other biodiesel and six ethanol plants are currently under construction in the state.

According to the Indiana Soybean Board, the proposed facility will be one of the world's first biodiesel production plants to be fully integrated with a soybean processing plant. About 260,000 metric tons of soybean oil from the plant will be used each year for biodiesel production, and one million tons of protein-rich soybean meal will be produced annually for use by the livestock and poultry industry. The plant will produce up to 250,000 gallons of biodiesel per day, or more than 80 million gallons per year.

"This announcement is extremely good news for all Indiana farmers," said Chris Novak, executive director of the Indiana Soybean Board. "Indiana is getting a soybean processing facility and a biodiesel production facility. To have both planned for construction is unprecedented in the U.S. today."

He said soybean farmers will greatly benefit from the plant because they will be able to sell their soybeans locally and receive a better price because of lower transportation costs. Livestock producers should also benefit, he says, thanks to 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. "This commitment from the Louis Dreyfus Company, with the support of Governor Daniels and the Indiana State Department of Agriculture, shows that it's a good investment, and that Indiana is serious about becoming the 'Texas of biofuels' for the U.S."

Indiana Governor Mitch Daniels announced yesterday that Louis Dreyfus Agriculture Industries, LLC, plans to build the world's largest biodiesel plant in his state. The combined 50-million bushel per year soybean processing plant and biodiesel production facility will be located near Claypool, Indiana.

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