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October 17, 2006

Lease signed to bring biodiesel plant here

A $77,000 per year lease agreement with a biodiesel plant was approved Tuesday by the Muskogee City-County Port Authority.

Nova Biosources Fuels Inc. plans to build a $50 million plant just off the Muskogee Turnpike south of the former Zapata Industries building, said Scott Robinson, port director.

The facility will turn animal and vegetable oils into biodiesel, a product that can be blended with diesel fuel for a cleaner-burning fuel that reduces petroleum consumption.

The plant here will have a capacity of producing 60 million gallons per year, Robinson said.

According to information at www.conagrafoods.com, Nova has signed an agreement with ConAgra to purchase vegetable oil and animal-based fats for a biodiesel plant to be built in Oklahoma. ConAgra also has agreed to buy the biodiesel fuel produced at the refinery.

The local plant will have 15 to 25 employees who will be paid from $35,000 to $85,000 per year, Robinson said. He expects the plant supervisor to perhaps be someone who moves here. The other employees should be hired locally.

The plant will take about one year to build, Robinson said.

The lease agreement gives Nova 120 days to secure the permits necessary to build the plant, he said.

The lease agreement presented to the Port Authority is for $70,000 per year for 10 years, with three options to renew in 10-year increments. The company will pay additional fees for cargo moving in and out of the port by rail and barge, bringing the total revenue to the port to about $100,000 per year, Robinson said.

Reach Liz McMahan at 684-2926 or lmcmahan@muskogeephoenix.com.

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