Biodiesel Company Starts Construction on Memphis Plant

JULY 11, 2006 - Posted at 3:27 p.m. CDT

MEMPHIS, TN - Construction has started on a Memphis biodiesel plant that is expected to produce up to 36 million gallons of the alternative fuel per year.

Memphis Biofuels announced today that production should begin in the fall.

Biodiesel is a renewable fuel for diesel engines derived from natural oils like soybeans.  It can be blended with petroleum-based diesel fuel for use in vehicles.

The company plans on using vegetable and animal feed stocks from the region to produce the fuel.

Tennessee has two other plants currently producing biodiesel, but the Memphis facility will be the largest producing plant in the state once it is completed.

Company officials say the facility will also have the capability of expanding production to 100 million gallons a year.

(Copyright 2006 by The Associated Press.  All Rights Reserved.)