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The crisis on Wall Street is having an impact on biofuel production in this country. Iowa-based Renewable Energy Group is delaying building two biodiesel plants, one in Louisiana and one in Kansas, because of the recent trouble in the bond market.

This story in the New Orleans Times-Picayune says the 60 million gallon plant in St. Rose, Louisiana says delays by a former governor in that state helped lead to the problem as well:

The Renewable Energy Group had hoped to use Gulf Opportunity Zone financing to build its $80 million plant at the International Matex Tank Terminals site in St. Rose, but company officials said in a statement that a delay in getting approval for the GO Zone funding resulted in the company being unable to obtain suitable financing.

REG was approved for $100 million dollars of Go Zone Bonds last May, but said that then-Gov. Kathleen Blanco did not sign off on the financing until September. By the time the bonds were brought to market, the company officials said the project was unable to get suitable financing.

In Kansas, REG has had to delay another 60 million gallon plant near Emporia, as reported in the Emporia Gazette:

The company cited tightening of credit markets, the difficulty to find funding for biofuels projects and rising commodity prices.

“Our inability to finalize our funding has caused us to stop construction while we wait for the credit markets to improve and search for new financing,” REG Chairman and Chief Executive Officer Jeff Stroburg said in the release.

Company officials say while they are disappointed in the delays, they remain committed to building the plants.

A new web site launched earlier this year offers a new way to buy biodiesel.

FillmoreFuels.com, developed by biodiesel enthusiast Wesley Fillmore, offers everyone from hobbyists to commercial producers a forum to offer their biodiesel for sale in an auction-like environment. In addition, buyers can find potential sellers in their area:

According to the Annual Energy Outlook released by the Energy Information Administration in 2007, consumption of biodiesel is expected to reach .4 billion gallons by 2030. Fillmore Fuels is the first on-line community dedicated to biodiesel fuel and related products, and the consumers, hobbyists and commercial producers interested in purchasing and selling them. This new auction site brings buyers and sellers together to engage in on-line commerce and to address pertinent issues related to the industry. Since gaining momentum, the renewable fuel industry has faced a number of critical issues, including regional pricing. By creating a dynamic environment in which buyers can find the products they need at prices they can afford, Fillmore Fuels hopes to help mitigate this problem. While the value of biodiesel fuel varies by region, consistent and competitive pricing is essential to the growth of the market.

“With profit margins at a minimum, the ability to resort to more affordable feedstock when available is priceless, and Fillmore Fuels provides this option,” says Wesley Fillmore, President. “In addition, it provides a means for local farmers, restaurants, and producers to sell their virgin vegetable oils or WVO to the highest bidder, thus increasing their profit margins and limiting the middle man and cost.”

Company officials also point out that buyers are able to ask sellers questions about their fuel, making them better informed consumers.

Check ’em out, and let us know what you think!

An Ohio biofuels maker will receive a $50,000 state grant to help it make biodiesel.

This story from the Springfield (OH) News-Sun says Liberty Fuels of Ohio, LLC is getting the money from the Ohio Rail Development Commission:

The funding will help Liberty purchase equipment to improve its ability to move and/or load and unload train cars, according to the release. By utilizing existing railroad, Liberty will have a greater ability to use different feed stocks to produce biodiesel, the statement continued.

“By committing these funds to Liberty Fuels of Ohio, the Ohio Rail Development Commission has demonstrated that Ohio welcomes new business and technology into our economy,” said [state Rep. Chris Widener (R-Springfield)]

Continental Airlines will run a test flight on biofuel sometime next year.

This story posted on Gizmag.com says the experiment with Boeing will make Continental the first major U.S. carrier to attempt such a flight that hopes to find a sustainable fuel for the aviation industry:

Continental’s biofuel flight will use a Boeing Next-Generation 737 aircraft equipped with CFM International CFM56-7B engines. CFM is a joint enterprise of General Electric Company and Snecma. In the months leading up to the flight, Continental, Boeing and GE will work together and with an undisclosed fuel provider to identify sustainable fuel sources that don’t impact food crops, water resources or contribute to deforestation, and which can be produced in sufficient quantities to support a pre-flight test schedule that includes laboratory and ground-based jet engine performance testing to ensure compliance with stringent aviation fuel performance and safety requirements.

The article goes on to say that Continental has been working hard to reduce its environmental impact. The company has reduced its greenhouse gas emissions and fuel consumption per mainline revenue passenger mile flown over the past decade.