An Iowa biodiesel plant will get a $38 million expansion that will just about double the refinery’s output. This article from the Sioux City Journal says Ag Processing Inc. (AGP) is moving forward with the project just south of the city with some help from local and state incentives.
“This expansion reflects our commitment to the biodiesel industry and soybean farmers as we continue to invest in this important value-added market,” AGP CEO Keith Spackler said in a statement Friday.
The Port Neal facility was the nation’s first commercial-scale biodiesel plant when it opened in 1996. The plant currently produces up to 30 million gallons per year.
The biodiesel expansion is complementary to the co-op’s plans announced early this year to build a $90 million vegetable oil refinery at the rural Woodbury location, said chief operating officer Cal Meyer.
At separate meetings Friday, the county and state adopted a package of incentives to help finance the biodiesel expansion, which is expected to create three new jobs.
The Iowa Economic Development Authority in Des Moines approved $308,000 in added incentives, with $24,000 in loans and $280,000 in increased tax credits.
Earlier this year, the state board approved $152,000 in forgivable or interest-free loans and $810,000 in various state tax credits for the vegetable oil plant, which is expected to create 20 new jobs. Friday’s action boosts the state’s total package to $1.27 million.
AGP is the world’s largest farmer-owned soybean processor.