Tri-City Energy Begins Construction on Biodiesel Refinery in Keokuk

JOHNSTON, Iowa - Jun 05, 2006 - Iowa Now Has 5 Operating Biodiesel Refineries and 5 Under Construction

JOHNSTON, IA – The Iowa Renewable Fuels Association (IRFA) today congratulated Tri-City Energy for beginning construction on its biodiesel refinery in Keokuk, Iowa. The facility will process soybean oil into 5 million gallons of biodiesel and 500,000 gallons of glycerin annually.

“Biodiesel use is growing rapidly across the nation and companies like Tri-City Energy are stepping up to meet the demand,” said Monte Shaw, IRFA Executive Director. “Iowa’s new 25% renewable fuels standard (RFS) and retail biodiesel tax credit will spur biodiesel use right here in Iowa as well. While renewable fuels production is largely associated with rural Iowa, Tri-City Energy shows renewable fuels can ‘renew’ industrial areas as well.”

Tri-City Energy is serving as its own general contractor to convert a former General Mills plant into a biodiesel refinery. Prep work began on the building in April and the retrofit process is now fully underway. Tri-City Energy will incorporate a process design provided by Technochem, of Ames, Iowa. After completing this retrofit by mid August 2006, Tri-City Energy plans to start construction on a soybean crushing facility and an additional 30 million gallon biodiesel production facility located on the Mississippi riverfront in Keokuk. That facility is scheduled for completion in the fall of 2007.

“The timing and the location of this facility is perfect” said Al Moander, Sales and Marketing Manager for Tri-City. “We will be able to fully utilize barge, rail and truck to effectively contain our manufacturing costs and provide efficient service and quality product to our customers.”

Iowa is the leader is renewable fuels production. Currently, Iowa has 10 biodiesel refineries with a combined annual capacity of over 165 million gallons either in operation or under construction. In addition, Iowa has 25 ethanol refineries with the capacity to produce over 1.5 billion gallons annually. There are 4 ethanol refineries and two expansions under construction with a combined annual capacity of 425 million gallons. Many additional renewable fuels projects are under development.

The Iowa Renewable Fuels Association was formed in 2002 to represent the state’s ethanol and biodiesel producers. The trade group fosters the development and growth of the renewable fuels industry in Iowa through education, promotion, legislation and infrastructure development.