Renewable Fuel Technology announces formation of
Republican Valley BioFuels LLC,
with intention to develop biodiesel facility in Furnas County
Renewable Fuel Technology, LLC (RFTI) announced today at the Arapahoe Chamber of Commerce meeting that they intend to develop a 10 million gallon per year oilseed processing and biodiesel plant in Arapahoe, Nebraska.
Phil High, partner in RFTI said that with the changes in water availability in the Republican River Valley it has become obvious that we must think outside the box to find ways for agriculture and the communities in the Republican River Valley to survive and prosper in face of the new water realities.
The proposed plant will process high oil, low water use crops including sunflower, soybean and canola into raw vegetable oil and then further process that oil into biodiesel. By creating a strong market for these crops in the center of the Republican River Valley farmers will have an opportunity to participate in the growing renewable fuels market at the same time as growing crops that are sustainable in the new realities of the region.
When operating at full capacity the proposed plant will utilize oilseed production from approximately 100,000 acres in the region. The plant will employ approximately 14 people directly in the plant operations.
Republican Valley BioFuels LLC was the recipient of a Value Added Agriculture Grant from the state of Nebraska through the Nebraska Rural Development Commission. This grant will be used for start up expenses, including development of the business plan, as well as agronomy research on high oil crops and an economic analysis of these crops in that region of the state. Republican Valley BioFuels LLC also anticipates use of the Nebraska Rural Advantage Act to facilitate the development of the project.
RFTI is working closely with Ag Valley Cooperative in development of Republican Valley BioFuels. The new plant will be located at Ag Valley’s current Arapahoe location which is 901 Pine Street. Republican Valley BioFuels will refurbish and update existing facilities at the location, plus add new structures for the development of the plant. Ag Valley Cooperative is headquartered in Edison, Nebraska and operates over 20 locations representing over 2,000 farmer members in Southwest Nebraska and Northern Kansas.
High commented, “Our relationship with a strong regional coop like Ag Valley is another key reason we are so confident about the future of Republican Valley BioFuels. Ag Valley is working with RFTI to think with vision to move forward in these challenging times.”
Deposits have been paid to a leading biodiesel plant component firm that has begun construction of the key components that will be used to construct the plant. If everything goes according to plan, construction should begin early this summer and the plant should be in operation by the end of 2007.
High said RFTI took several months looking into emerging biodiesel technology that uses only nominal amounts of water in the production process and is able to create co-products for livestock feed.
Another key component of the model being developed by RFTI is a regional concept for renewable fuel production. The feedstock for the operation of the plant should easily be grown within 75 miles of the plant and the intended market for the biodiesel and feed co-products will be within the region. RFTI also will use production agreements to originate grain production for the plant, as well as swap agreements whereby farmers can contract grain to be delivered to the plant in exchange for biodiesel that they may use to meet their own fuel needs.
High closed the announcement by saying, “It is very exciting to be a part of an opportunity to create a partial solution to the water crises faced by this region while creating economic opportunity and new hope for farmers and local communities through a sustainable environmentally friendly project like Republican Valley BioFuels.”
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