American Biofuels increases biodiesel production
Bakersfield, CA— American
Biofuels, L.L.C. (ABF), which is 35% owned by Green Star Products,
Inc., announced that it expects to increase biodiesel production
to 40,000,000 gallons per year in 2006.
This is a significant amount
since the entire biodiesel production in the United States was
only 66-million gallons in 2005.
The expansion of biodiesel consumption
in the U.S. is being fueled by several factors that include the
•Biodiesel is now selling
at or below the price of regular diesel. The effect is that
biodiesel is no longer a specialty market; it is now in the
mainstream of the fuel distribution system with demand expected
to increase by several hundred percent over the short term.
•DaimlerChrysler is the
first automobile manufacturer to approve the use of B-20 fuel
(20% biodiesel and 80% diesel) in its commercial fleet customers
including military and government vehicles.
follows many other nationwide commitments to use biodiesel, including
Governor Arnold Schwarzenegger and Senator Roy Ashburn’s
legislation to reduce Global Warming gases and reduce our dependence
on foreign oil for the State of California by the use of biodiesel
also, Governor Pataki’s announcement to increase the use
of biodiesel for fleet vehicles and in home heating oil for the
state of New York.
In response to these major commitments
by legislators, ABF is planning to increase its production of
biodiesel on both the East and West Coast.
ABF is planning a new 20,000,000-gallon
per year East Coast facility to supply New York State and surrounding
states and expects this facility to be in production by late 2006.
ABF is also expanding its existing
production biodiesel plant in Bakersfield to service California.
ABF originally expected its existing 5-million gallon per year
biodiesel plant to complete its expansion to 10-million per year
by January 2006. However, this expansion in Bakersfield will not
be completed until March 2006, because ABF decided to increase
certain designs to accommodate even further expansion later this
year. ABF is planning to commence further expansion to increase
the production capacity beyond 10-million gallons per year to
20-million gallons per year, with an estimated completion date
by late 2006.
The expansion of the Bakersfield
plant will be done without interfering with current biodiesel
production and delivery to present customers.