Biodiesel plant opens in Danville

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November 20, 2008

BY ANNA HERKAMP The Commercial-News Thu Nov 20, 2008, 01:32 PM CST

DANVILLE — A new biodiesel plant began operation in Danville today.

Wednesday, state and local leaders as well as the plant’s company representatives were on hand for a ribbon cutting at the plant’s location on Anderson Street, adjacent to Bunge Milling.

Also present at the ceremony were 27 new employees of the plant, called Blackhawk Biofuels, LLC. Nearly all of the workers are from the Danville area.

Blackhawk representatives Chairman Ron Mapes; Vice Chairman Jon Rosenstiel and Renewable Energy Group Chief Operating Officer Daniel Oh spoke of the facility’s commitment to serve not only Danville’s economy, but the eastern half of the United States’ needs for renewable energy.

REG has contracted with Blackhawk to purchase animal fat feedstocks from livestock facilities. The animal fat will be used in combination with soybean oil from Bunge to create the biodeisel.

The speakers said the plant will be among the top facility’s in the country for biodiesel production. The plant is situated ideally in east central Illinois to serve the northeast and southeast states. Its placement in Danville on the rail line also makes product transport easier, they said.

Vermilion Advantage President and CEO Vicki Haugen also spoke to the audience gathered for the ceremony.

The plant’s location in Danville began with talks that started 3.5 years ago, Haugen said. When most people think of economic development, they think of events like the ribbon cutting, she said.

They forget that projects like this one are long-fought processes.

“Nothing happens quickly,” she said.

The project took the cooperation of about 1,000 people working together on the state, national and local levels over more than three years, she said.

City officials re-zoned formerly residential property to make way for the project. Five families relocated as a result, Haugen said.

The state provided almost $20 million to supplement a $75 million private investment.

The Illinois Finance Authority also provided almost $5 million in Opportunity Returns grants through the Illinois Depart-ment of Commerce and Economic Opportunity and the Illinois Department of Transportation.

IFA Executive Director John Filan said the facility will help retain at least 100 jobs in the area. In the midst of bad economic news, the opening of this facility is good news for Danville, he said.

After the ribbon cutting, those in attendance walked through the facility on guided tours.

Gus Baltabols, a general manager with Renewable Energy Group, guided one group through the plant. The huge white tanks in the center of the property can store about five days’ worth of biodiesel, he said.

He also pointed out a portion of the plant that still is under construction, an area that will eventually store and process fatty acid from animal fat feedstock.

The facility began production today and the facility’s first biodiesel will be manufactured by early December.

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