$236 million biofuels complex coming to Arkansas

08/29/2008

By Mark Friedman

Algae will be used in the manufacture of biofuels after completion of a $236 million complex in Jerome, Ark., in about 18 months.

Construction will begin in early September at the southeast Arkansas complex.

The DFI Group Inc. of Raleigh, N.C., is developing the project, which will include two 28,000-sq-ft biodiesel plants and an ethanol plant on 100 acres, says Arkansas State Rep. Allen Maxwell, D-Monticello, Ark. Maxwell has worked closely with the group for more than a month.

The owner of the plants is Jerome Bio-Refinery LLC, led by Phillip Baugh of Monticello, Ark., and William Horton, president of the DFI Group.

Construction of the first biofuel plant will take about six months, while the second plant will be constructed after the first plant is operating, Maxwell says. Each biodiesel plant is expected to cost between $18 million and $25 million. After the second plant is completed, work will begin on the $200 million ethanol plant.

The general contractor is Sullivan Sales & Services of Sherman, Texas.

Algae from catfish farms in the area will be used as the main ingredient to make the biofuels, instead of the more traditional corn. The biofuel plants might also use seed, cellulous or animal fat to make the fuels, Maxwell says.

"Algae is 50 to 70 percent oil, so when you extract the oil from the algae you can take that oil and produce biodiesel," Maxwell says. What's left over from that process is carbohydrate, which will be used to manufacture biofuel in the ethanol plant. The remainder from the ethanol plant could be used to make animal feed.

The biodiesel plants are each expected to produce 10 million gallons of fuel annually while the ethanol plant can generate 110 million gallons annually, Maxwell says.

"Everybody down here is very excited about the potential for jobs," Maxwell says. "And it might give the catfish farmers some relief."

The complex is expected to employ about 250 workers.

More News>>