RFS2 Start Impetus Behind MO Biodiesel Plant Start

John Davis

Today’s implementation of the new Renewable Fuels Standard (RFS2) was the impetus behind getting one Midwest biodiesel open by July 1st.

RenewableEnergyWorld.com reports
the new owners of ME Bio Energy of Lilbourne, Missouri wanted to have the doors open of their 5 million-gallon-a-year refinery for today’s historic date:

General Manager, Jerry McDowell, said the group has “been working night and day” to get ready for the July 1st implementation of RFS2. “We have a fully staffed crew trained and ready to meet the Bio Diesel Production needs”, said McDowell. “Over the past sixty days we have worked diligently with Lee Enterprises of North Little Rock, the consulting group that helped us buy the plant” McDowell said, “and we brought back the plant’s original design and fabrication group, AP Innovations of Stuttgart, Arkansas. The combination of a dedicated staff, in conjunction with both Lee Enterprises and AP Innovations assisting us, has positioned ME Bio Energy to be ready to meet the demands of RFS2 earlier than we had hoped”. McDowell noted that the plant had obtained all its federal and state certifications, successfully run all its test samples, and was now ready to take orders. “I am certain that the refiners and producers, and other parties are beginning to fully understand the impact and obligations they now have under the Energy Independence and Security Act (EISA) of 2007 provisions that became effective July 1, 2010.” said McDowell.

Wayne Lee, owner of biodiesel consulting firm, Lee Enterprises, agrees. “When everyone realizes that 1.1 billion gallons of biodiesel or equivalent RINs must be purchased in 2010, and that the majority of biodiesel producers are currently not producing, I think there is going to be a ‘mad rush’ to find biodiesel” said Lee. “After all, 2010 is already half over and the companies that do not comply with their obligation can face daily fines of $37,000 per violation”, he said.

ME Bio Energy officials wanted to have the refinery ready to go as soon after purchase as possible.