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June 2006

TexCom to construct 35 million gallon biodiesel facility in Texas

Barge and rail access planned for efficient supply lines

Houston, TX— TexCom, Inc. announced that it has executed a Preliminary Engineering Agreement with Lurgi PSI, based in Memphis, Tennessee, to build a 35 million gallon per year biodiesel plant at the LBC bulk liquids terminal in Seabrook, Texas.

This facility is the first of several biodiesel production sites that TexCom currently plans to build and operate in the south central United States.

TexCom had previously announced the signing of a Letter of Intent with LBC to locate the 35 million gallon per year biodiesel plant at LBC Houston’s Seabrook site. LBC, based in Paris, France, is one of the largest owner/operators of bulk chemical terminal operations in the world.

The TexCom plant will utilize existing and newly added on-site storage capacity and other terminal facilities owned and operated by LBC under a fifteen year lease agreement. The facility will allow transportation of raw materials and product via barge, rail and truck.

The Engineering Agreement precedes the execution of a definitive Engineering, Procurement & Construction Contract (EPC). TexCom will execute the EPC when the project financing has been completed. Lurgi will provide the process technology, design and plant construction, utilizing its continuous process for converting soybean oil into fuel grade Biodiesel.

The TexCom project design includes the capability to store conventional petroleum diesel, allowing TexCom to blend and market B20 and other biodiesel blends as well as B100 on site. Feedstock will be brought in via barge or rail to the site, located near the Houston Ship Channel, to produce the renewable fuel.

Definitive feedstock and off-take agreements are currently being negotiated to ensure that at completion, the plant can move quickly to capacity.


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