FCEC still planning to build Hillje biodiesel plant
By BRENDA SOMMER news1@leader-news.com

The Farmer's Co-op of El Campo's plans to build a biodiesel plant in Hillje are still in a holding pattern, awaiting surveying and bank approval of plant plans.

The co-op will build the plant, which is seen as a cost-effective way to help the U.S. end its dependence on foreign oil.

"We're still waiting on the appraisal from the bank," said Jimmy Roppolo, FCEC general manager. "I got a note from the bank (Thursday) saying they're real close to finishing it."

Still needed for financing to move forward is a plat of the plant's location, adjacent to the co-op's cotton gin in Hillje.

"The surveyor's delayed," Roppolo said. "But the biggest wait right now is finishing up the bank's appraisal of the plans of the plant for the loan. We're stepping every step of the way, but it's like a crawfish."

Critics of the nation's rush to produce biofuels cite the cost to produce the crops used to make it, and the affect the need for those crops has had on food prices.

"I'm not buying that so much," Roppolo said.

FCEC and its new partner, GeoGreen Fuels, joined to become Coastal Fuels and are poised to build a 5-million-gallon per year biodiesel plant in Hillje. As well, Lone Star Ethanol announced in January its plans to build a 100-milliongallon per year ethanol production facility on land adjacent to FCEC's grain handling facility at the Port of Victoria. FCEC will supply that plant with grain and sell its by-products, and possibly have an ownership stake in the plant.

Estimated U.S. production of the biodiesel leapt from 25 million gallons per year to 75 million in 2005. Production of ethanol doubled globally between 2000 and 2005, with biodiesel output quadrupling.

In the past year, Texas also became the number one biodiesel producing state, increasing production capacity from 120 million gallons to 280 million gallons annually. Analysts estimate the biodiesel industry will add $24 billion to U.S. economy by 2015.

"I think the first shock was all the corn coming off the market and there was none left for cattle, so the price of beef goes up and price of cattle goes down," Roppolo said. "I think today they realize they can use 30- 40 percent of distillers' digestible grain soluble in cattle feeds."

Distillers' digestible grain solubles are the product left over from the ethanol creation process, which does not use up all of the corn's merit.

"Once they make ethanol, it's not like that corn can't be used as feed - the protein level is actually higher," he said. "It can't replace corn 100 percent, but it can replace a large percentage of it."

He said the public needs to look harder at the cost of all products before deciding whether biofuels are a good direction for American consumers.

"Why doesn't the public think about the price of oil?" he asked. "We're going to make food go up 10 percent, but the price of fuel's gone up 300 percent. I think they're looking at the thing backwards. People aren't understanding that if we could get this oil thing somewhat in balance by making our own fuel - food may go up 10 percent, but fuel may go down 30 percent."

Roppolo said biofuels can be made at a profit right now, but only with subsidies.

"It probably can make a profit at this $100-per-barrel oil price, but it's still tight," he said. "But we have to get where we're sustaining ourselves, instead of relying on people who are not our friends."