FCEC closing in on plans for biodiesel
By BARRY HALVORSON news@leader-news.com

Using its streamlined process, the Wharton County Commissioners Court approved a short-form subdivision plat for the Farmers Co-op of El Campo for a site being proposed for development as a biodiesel plant.

The plat was approved by the commissioners at their Dec. 10 meeting.

Co-op General Manager Jimmy Roppolo said the proposed plant's 3- acre site is located at the intersection of CR 304 and 309 across the road from the co-op's Hillje Cotton Gin.

Roppolo said the co-op is developing the project in conjunction with Geo- Green LLC, which recently started operation of a similar plant in Gonzales.

"We've been studying this a little over a year and a half," Roppolo said.

"They have all the tech to build the plant and since we're in the cotton and soybean business we thought it would be a natural fit," he said. "We're to the point where we've approached our board, been to the bank and discussed a loan and had the property appraised and platted. Now we'll go to the board in the next 30 to 45 days to see if they want to go ahead. The plant would be operated as a limited liability company owned 50 percent by the coop and 50 percent by GeoGreen."

If approved, Roppolo said construction would take about six months and the plant could be in operation in as soon as eight months.

Representatives of the co-op said the organization is looking at developing a biodiesel plant that would convert various kinds of organic oils and animal fats into diesel fuel.

"It can use any kind of vegetable oil: corn, cottonseed, soybean, or animal fats such as chicken grease or used cooking oil," he said. "We could use the waste oil from fast food restaurants, for example."

He said the co-op would distribute the oil through a marketing company to be blended with regular diesel fuel. He said such fuels have a B-rating with the number following the B representing the amount of biodiesel in the mix. A B-5 fuel would have 5 percent biodiesel in the mix.

"We sell B-5 because most vehicle manufacturers currently only warranty their engines for B-5 or less. But I was at the Gonzales plant the other day and had three-quarters of a tank and filled up with the biodiesel and it ran fine which put it at around a B-25 mix I was running."

In addressing a second economic development project, the commissioners approved a new reinvestment zone and tax abatement for Phase 3 of Navasota Energy's Colorado Bend power plant. Both items were approved unanimously.

The reinvestment zone includes property owned by Navasota adjacent to their current operational facility, Phase 1, and a facility currently under construction, Phase 2. A reinvestment zone must be established before the county can grant any tax abatements.

The abatement approved by the commissioners is similar to the abatements provided for Phases 1 and 2 and includes a 500-percent abatement over a 10-year period. The taxable value of the improvements to the property will be abated at a 75-percent rate for the first five years and 25-percent over the final five years of the agreement.

"The idea is that during the first five years the company will not have any revenue coming in during the construction phase," Murrile said. "During the final five years the will be in a better position to pay the higher taxes."

The abatement is for new "eligible property" - buildings and other permanent improvements - the construction of which starts after Jan. 1, 2010 and is completed before January of 2011.