Las Vegas-based New-Com investing US$65M to rebuild its Biodiesel of Las Vegas operation, hopes to restart plant by mid-October, produce 30 million gallons/year of biodiesel made from used yellow grease blended with soybean oil

LOS ANGELES , August 19, 2011 () – Biodiesel of Las Vegas is hoping to resume operations by mid-October, after undergoing a US$65-million rebuild, according to a company official, reported the Las Vegas Business Press on Aug. 15.

The company, which is owned by Las Vegas-based New-Com Inc., plans to produce 30 million gallons of biofuel in one year, said Greg Paulk, president of Biodiesel of Las Vegas.

Paulk, who is overseeing construction on the company’s new facility, said the project was idle for two years because of the economy.

Negotiations are to start by next month with possible suppliers of the used yellow grease feedstock that the company blends with soybean oil to make its biofuel, said Paulk, the Las Vegas Business Press reported.

New-Com, which also owns construction companies in the area, plans to use the 20% biodiesel blend from Biodiesel of Las Vegas in its 1,000-unit construction fleet each summer. The company’s 5% biodiesel blend will be sold to gas stations.

The local school district’s 1,547 school buses use 3.6 million gallons of a 5% biodiesel blend to meet Nevada’s requirement that public entities use a form of biodiesel to fuel their vehicles.

The 5% blend was US$0.18 per gallon cheaper than the 20% blend as of press time, reported the Las Vegas Business Press.

Paulk said he hopes to renew old agreements Biodiesel of Las Vegas had with various local sources of used yellow grease when it operated between 2004 and 2008. It closed in 2008 due to financial difficulties.

Until Biodiesel of Las Vegas restarts, oil recyclers do not have any local options for selling their product, the Las Vegas Business Press reported.

The primary source of this article is the Las Vegas Business Press, Las Vegas, Nevada, on Aug. 15, 2011.

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