A soybean-based fuel plant is planned for Mexico, Mo.

Another milestone for biofuels was reached in late April when Mid-America Biofuels announced plans to build Missouri's first major biodiesel production plant in Mexico, Mo.

Mid-America Biofuels is an amalgamation of several ventures including Biofuels LLC, a farmer-owned biodiesel business based in Jefferson City Mo.; Ray-Carroll County Grain Growers, Richmond, Mo.; and MFA Oil Company, Columbia, Mo.

Archer Daniels Midland Company, which signed a letter of intent to purchase an interest in Mid-America Biofuels and provide products and service to the venture, has a soy oil extraction facility in Mexico.

The planned America Biofuels facility will produce some 30 million gallons of biodiesel per year, using soybean oil from the ADM plant as feedstock.

While biodiesel has yet to reach production levels of ethanol in the United States, the nation's biodiesel pool is rising. There are currently 32 biodiesel production plants throughout the country. Biodiesel production and sales on average have doubled every year. 2004 sales were estimated at 30 million gallons. Europe leads the world in biodiesel production. Thanks to tax and manufacturing incentives from the EU and individual member countries, on that continent there are more than 50 production facilities producing some 630 million gallons of biodiesel.

"The biodiesel tax incentive, which took effect Jan. 1, 2005, has had a positive effect on demand,"  said Joe Jobe, CEO for Jefferson City-based National Biodiesel Board. "Also, state initiatives in Minnesota and Illinois have spurred demand regionally."

By the end of 2005, there is expected to be at least 100 million gallons of additional domestic biodiesel capacity.

In Missouri and Iowa, approximately 50 percent of soybean farmers use biodiesel in their operations.

And increasingly, large pool fleets are using biodiesel. At a ceremony to announce the facility, Missouri Senator Christopher "Kit" Bond listed a number of sizeable fleets that are powered exclusively by biodiesel, including the non-combat portions of the U.S. Army's Fort Leonard Wood vehicles. Bond also mentioned biofuel use by the city of Mexico, Mo.; Audrain County, Mo.; Whiteman Airforce Base; and the Missouri Departments of Agriculture, Transportation, Energy and others.

Nationally, more than 400 retail filling stations make various biodiesel blends available to the public, and more than 1,400 petroleum distributors carry biodiesel and biodiesel blends. The use of biodiesel yields significant environmental benefits, such as a reduction in emissions of particulate matter, unburned hydrocarbons and carbon monoxide compared to petroleum diesel, and it significantly reduces emissions of lifecycle CO2, which has helped bring the fuel to fleets in smog-laden geography.

"This is excellent news for growers, processors, our economy and our environment," said Paul Mulhollem, president and chief operating officer of ADM.

"This project demonstrates how farmers and processors can partner for growth and success while also extending our nation's energy supply. We are pleased to leverage the extensive experience and tremendous success that ADM has had in the biodiesel market in Europe. The anticipated extension of federal support will serve as a vital catalyst to develop demand for biodiesel in the United States," he said.

 "Missouri's farmers were the first to make investments in the biodiesel industry, contributing their check-off dollars to basic research on the fuel over a decade ago," said Dale Ludwig, executive director of Missouri's Soybean Association and Soybean Merchandising Council. "Our soybean farmers view biodiesel as the most promising soy product to date, and we have spent a lot of time building markets and interest in the fuel. Mid-America Biofuels' decision to build this plant will have a tremendous impact on the Missouri economy  and confirms our dedication to expanding the biodiesel industry."