Company to Open SeMo Biofuel Plant Aimed at Producers

KANSAS CITY, MO - A Canadian biofuels developer is planning a facility in southeast Missouri to convert wood scraps into fuel to operate factories and heat office buildings.

Dynamotive Energy Systems says the $24 million plant will be built 180 miles south of St. Louis.

It could generate up to 12 million gallons of fuel per year, using up to 73,000 tons of wood byproducts and other residue from nearby sawmills.

The company says industrial users could use the fuel, called BioOil, to replace conventional oil to fire their boilers.

Dynamotive says it already uses the fuel to generate electricity at one of its two BioOil plants in Ontario and is negotiating with potential U.S. industrial customers.

(The Associated Press contributed to this report.)