A Biodiesel Refinery Grows in New York- what about Indiana?

The New York Times reports that a compnay seeks to build a biodiesel refinery in Brooklyn. Note this is not an ethanol refinery but will use soybeans and restaurant grease.

So what does this have to do with Indiana? First, seems the refinery is using land previously used by petroleoum refineries that could not be used for anything else. More importantly, think on this paragraph:

“By introducing things in New York, or by doing them ourselves or giving incentives, we also create a market,” said Daniel L. Doctoroff, deputy mayor for economic development and rebuilding. “When you create a market, the price comes down, and as price comes down more people use the product, so you create a virtuous cycle.”

Why cannot this thinking apply to Indiana rather than sell of state assets? I think it applies to more than biodiesel. With some imagination and boldness, we could take it further.

A quick Google roundup of biodiesel refineries:

Biodiesel Magazine (2006)

Inside Indiana Business reports that Louis Dreyfus Corp. is expected to announce that they are building an 80 million gallon biodiesel refinery and 100 million gallon ethanol plant at an agro-industrial park in Indiana. Indiana’s Governor is expected to make an announcement today.

Update: FortWayne.com reports that the biodiesel plant will cost $135 million and employ 85 workers. The company also intends to build a soybean processing plant.

Brownfield Ag News

Countrymark Co-op pipes biodiesel

Monday, July 24, 2006, 3:37 PM

by Andy Vance

Countrymark Co-op has piped the first batch of B5 biodiesel through a private carrier pipeline, becoming the first company in the country to distribute blended biofuels via pipeline. The blend of 5% soy oil and 95% Co-op Super Dieselex-4 pumped from the Mt. Vernon, Indiana refinery to a terminal in Jolietville, Indiana 72 hours later. Without the pipeline, three traditional tanker trucks would have transported B100 to the terminal for blending at the rack. Via the pipeline, however, the blended fuel was distributed in a 210,000 gallon tender.

Midwest's Largest Refinery in Indiana to get $3B Upgrade (2006)

The Midwest's largest refinery in Whiting, Indiana will get $3B of upgrades from its owner BP to increase production and allow it to process more Canadian oil including heavy oil-sands crude. The 410K barrels a day it currently produces will be increased 15%, and instead of 20% Canadian oil at present 80% to 90%. of the feedstock will be able to be Canadian.