A company that is bringing one idled biodiesel plant in Iowa back to life is working one getting a second one operational.
The Keokuk (IA) Daily Gate City reports that Enervation, which is already getting the former Tri-City Energy plant back up to speed (see Joanna’s post from Jan. 25, 2011), has acquired a 60 million gallon per year biodiesel plant in Algona, Iowa:
After months of negotiations, Enervation’s founders, Paul Tantillo and William Dollard have come to an agreement to purchase the Algona biodiesel plant from the bank for an undisclosed amount. The 60 million gallon per year plant completed in 2007 never became operational and requires a significant amount of work to conform to the Enervation plan for the property, Tantillo said.
Enervation is now reviewing the existing permits and licenses, while the engineering team works to produce a more definitive plan to bring the plant up to the desired specifications. Enervation also intends to add additional components to the facility to create additional revenue.
“While the plant as it stands cannot produce positive cash flows, we have a strategic plan for the Algona location that enables the facility to thrive and to fulfill its promise to the community for the jobs so sorely needed in the area,” Tantillo said.
Enervation’s founders also say they want to make the biodiesel plants work without any government grants or the federal $1-a-gallon biodiesel tax credit.