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Primafuel Rethinking Sacramento Port Biofuel Plan

8/31/2009 10:00:00 PM

May move to import and distribution rather than production…

Sacramento, CA, September 1, 2009 – A planned biofuel production facility for the Port of West Sacramento may instead become an importing and distribution hub for a variety of biofuels, reports the Sacramento Bee.  Primafuel, Inc. which had planned to build the country’s largest biodiesel plant along with a distribution terminal at the port has had time to rethink that proposition since the bottom fell out of the biofuels industry over the last year. As a result, the company’s original financing for the plant came apart. But the future isn’t bleak for the industry or the company.  There are federal biofuel mandates that will likely jump-start demand, and the California Air Resources Board (CARB) recently adopted a rule to reduce the carbon content of motor fuels ten percent by 2020, which will also help sales. The CARB rule will start next year and there is expectation that it will jump-start an increase in usage of ethanol and biodiesel along with other alternative fuels.  According to Rahul Iyer, Primafuel's chief strategy officer, his company has been in contact with fuel distribution companies, among others. “There are a number of … parties who understand there is a very important strategic benefit" to being part of a biofuels network, he said.

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