Business

July 25, 2014

Garnett ethanol plant plans to add production of renewable diesel fuel

An ethanol plant in Garnett said this week it plans to begin to produce renewable diesel fuel as well.

An ethanol plant in Garnett said this week it plans to begin to produce renewable diesel fuel as well.

East Kansas Agri-Energy said the diesel will be made from corn distillers oil, which is already produced at the plant, along with other feedstocks purchased on the market.

Construction of a new facility to handle the new biofuel is expected to begin soon. Construction should take 12 to 14 months, according to a news release from the company.

The plant will be able to produce 3 million gallons of hydrocarbon fuel per year, and it will have the ability to double that capacity in the future.

“This is about maximizing revenue, leveraging activities that we already do every day, and enhancing the value of products we already produce now,” Jeff Oestmann, EKAE president and CEO, said in a statement. “Adding renewable diesel capability aligns perfectly with our business strategy of diversifying our energy portfolio and creating additional enterprises that are sustainable on their own.”

Markets for renewable diesel are the same as petroleum derived diesel fuel including motor fuels.

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