New owner puts Seneca biodiesel plant back to work

By Julie Wernau
Posted Aug. 12, 2010 at 1:00 p.m.

A Seneca biodiesel facility mothballed in March after its owner filed for bankruptcy, reopened Thursday under new ownership.

The 60-million-gallon-a-year plant produced for less than a year under Nova Biosource, and all but six of of approximately 40 workers were laid off. Renewable Energy Group acquired the facility in April.This is the second such purchase this year by Renewable Energy, which also bought a biodiesel facility in Danville in February.

The purchases come at an unusual time for the biodiesel industry, which saw its dollar per gallon tax credit from Uncle Sam expire in January. A proposal to extend that credit, in place since 2004, never made the floor and the biodiesel industry has argued that makes it difficult for the industry to stay afloat and help reduce the nation’s reliance on foreign oil.

Dan Oh, president and chief oeprating officer of Renewable Energy, said Illinois has a deep and wide consumer base for biodiesel, made largely from Illinois corn and soy oils and byproducts, animal fats and restaurant grease with much of the raw materials bought from Illinois farmers. That keeps the facility profitable. State tax incentives in place since 2003 for those who buy biodiesel and biodiesel help, he said.

“People are more willing to take risks in Illinois because they think it will continue to be a good market,” he said.

The facility now employs 38, many of whom were called back from the layoff.

Jeremy Shanks, who lives within sight of the plant,  was one of the few employees who remained for basic upkeep.

“It was completely devastating,” he said of the day the layoffs came. “We built this from the ground up.”

“It was amazing the smiles on their faces,” he said of those returning to work. “They were ready to go. They were like, ‘Let’s go get dirty and throw some wrenches.’ “

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One comment:

  1. Basher 5-2 Aug. 12, 2010 at 2:41 pm

    Glad that plant and real jobs are back on line, and this time WITHOUT the subsidies (read: shell games with taxpayer dollars). A one time break to help cover start-up costs is one thing, perpetual propping up is another. Regarding the inevitable wailing about subsidy to “big oil”, irrespective of how factual that is, are irrelevant. Nearly ALL of those kinds of income redistribution schemes should be phased out. In any case, the stuff you use any day got to your local store by using the “evil” conventional fuels. Most of us are awaiting with keen interest the “alternative” that will seriously displace billions of gallons of crude oil anytime in the reasonable future. Cellulosic ethanol comes to mind. Maybe Al Gore has the magic enzyeme that will make that a commercially viable process. If there were a valid scientific breakthrough pending, venture capital would be kicking down the door to get started. Otherwise it’s only more endless “subsidy” including for the researchers looking for a $$ sugar daddy.