Galveston Biodiesel Plant Back On

John Davis

A Galveston, Texas biodiesel plant that looked like it was done after oil giant Chevron backed out of a deal to expand operations, now looks like it is back to expanding its efforts.

This story in the Houston Chronicle says Galveston Bay Biodiesel will spend $15 million to do some improvements and settle legal claims against it after Chevron left the project high and dry last year:

Galveston Bay Biodiesel, the partnership that owns the plant, said the money is coming from one of the original investors in the project but did not identify the investor.

In a statement, the partnership said it will use $2.2 million of the money to settle lien claims filed last year by J.M. Davidson, a Corpus Christi-based construction firm, and other vendors who said they weren’t paid fully for work performed at the plant.

Other money will go to finish some modifications and expansions of the plant, which the partnership contends were halted last year when Chevron decided not to invest more money in the project.

The article says Chevron claims it was in the deal just to get things started, but the partnership says Chevron breached its agreement and misrepresented itself to up its part in the plant. The Chevron infusion was suppose to help the plant go from 20 million gallons a year to 100 million. This new investment should help the plant expand to 40 million gallons a year.