Endicott Biofuels, LLC (EBF) has closed a $40 million private equity financing for the construction of a “second generation technology” biodiesel and bio-derived products plant that will feature a high level of feedstock flexibility. The full equity financing commitment, provided by Haddington Energy Partners III LP, will allow EBF to proceed quickly through the construction and commercial operation of this first plant.
EBF plans to build additional bio-fuel and bio-derived product facilities throughout the U.S. within the next two to five years. It expects to break ground in 2008 on its first plant and intends to wholesale the fuel to the developing bio-fuel brokerage market. EBF is also looking to develop relationships with potential feedstock suppliers and fuel purchasers, such as large diesel fuel consumers or large oil companies.
Biodiesel can be used at 100 percent concentration as a petroleum diesel substitute, or in concentrations as low as 2 percent as a diesel fuel additive to reduce sulfur emissions and improve engine lubrication. Biodiesel is significantly cleaner than petroleum diesel and is made from a variety of organic materials such as vegetable oils, animal fats and other renewable agricultural products and waste products. Biodiesel and other bio-derived fuels such as ethanol are poised to play an important role in reducing America’s dependence on foreign oil.
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