Operators of Idled Biodiesel Plant Wait for Market to Improve

December 10, 2007

(Clayton, DE) -- Just a year or two ago, diesel fuel made from soybeans was touted as a promising new alternative fuel. Now, a biodiesel plant in Clayton is sitting idle and the company that owns it is waiting for the market to turn around.

The Mid-Atlantic Biodiesel facility has the capacity to refine up to 6 million gallons of biodiesel fuel per year. The plant opened in September 2006, but the rising price of soybean oil forced the plant to halt production this spring .

The plant began production with nearly $1 million in state and federal grants and a $5 million loan from the Delaware Energy Office. Company president Martin Ross says the company has kept its loan payments up-to-date.

Ross says soybean oil is currently priced too high to make biodiesel production profitable.

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