Engineering News

Memphis Biofuels LLC Starts Construction of Large Biodiesel Plant
Tuesday July 11, 1:35 pm ET

MEMPHIS, Tenn.--(BUSINESS WIRE)--July 11, 2006--Memphis Biofuels LLC today announced the closing of its funding and the start of construction on its 36 million gallon per year biodiesel production facility. Located in Memphis, TN, the facility is designed to be expanded to 100 million gallons per year in the future. The Company plans to be in production this fall. Local management, Kenneth Arnold and Brandon Sheley, partnered with C&C Biofuels LLC, an affiliate of New York private equity firm Cohen & Company, LLC to establish Memphis Biofuels LLC.

The Company will utilize state of the art technology and regionally available, high quality vegetable and animal feed stocks to produce biodiesel for the mid-south and national markets. With the strong agricultural base in Tennessee, Mississippi and Arkansas, in addition to being located near the Mississippi River and in one of the nation's largest trucking and railroad hubs, the Memphis facility is ideally situated to serve regional, national and international markets.

The Company has significant in-place production and logistics infrastructure and a strong management team to allow quick entry into the biodiesel market. Construction is fully permitted and completion of the biodiesel facility is expected this fall. In addition to meeting all ASTM standards, the Company intends to seek BQ 9000, the quality certification of the National Biodiesel Board.

Kenneth Arnold, chief executive officer of Memphis Biofuels LLC explains, "The biodiesel business is growing rapidly in the U.S. Our Company is uniquely positioned to quickly become a high quality, low cost biodiesel producer. We will shortly be one of the major producers of biodiesel and the first large scale producer in the Mid-South." Brandon Sheley, senior vice president for sales and marketing stated, "The advantages of the Memphis location as a major transportation hub and the speed that we will be able to get our biodiesel to market will allow us to compete very effectively."

Memphis Biofuels will create approximately 50 manufacturing jobs at its Memphis facility. Mr. Arnold adds, "We are excited about establishing a new business, and industry, in Memphis and we look forward to helping the country reduce dependence on foreign oil while at the same time lowering emissions of global warming and carcinogenic gases."

Biodiesel is the fastest growing alternative fuel in the U.S. because it can be used in any proportion up to 100% and represents a viable and immediately available, environmentally friendly alternative to diesel fuel. It can be blended at any level with petroleum diesel to create a biodiesel blend; it can be used in diesel engines with little or no modifications, maintains the payload capacity and range of diesel, and it is simple to use, biodegradable, nontoxic, and essentially free of sulfur and aromatics.

The Company is a founding partner of West Tennessee Clean Cities Coalition. Andrew Couch, the Coordinator of this organization, stated that "Memphis Biofuels represents a major event for West Tennessee with a large producer of biodiesel coming on line in the next few months." The Company is also a member of the National Biodiesel Board.

Source: Memphis Biofuels LLC

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