Bringing biodiesel to the Berkshires

Source: Supply Chain Digital

Date :5/30/2007 3:39:42 PM

State and local forces team up to help bring a new $50 million biodiesel fuel plant to Western Massachusetts.

By David Weldon

While ethanol fuel seems to get all the press coverage of late, the biofuel industry is also enjoying rapid growth.

That is further evidenced by the recent announcement by Berkshire Biodiesel that it will build a new 50 million gallon per year biodiesel fuel plant in Pittsfield, Mass., at the Ashuelot Park site. The new plant would be one of the first large-scale biodiesel production facilities in the Northeast, and Berkshire Biodiesel has announced it is investing $50 million in its construction.

Equally important, the project is taking shape due to a combined effort of local town, city and state resources, all working in partnership with the company to create the distribution supply chain needed to make it all happen. While Berkshire Biodiesel provides the funds to build the plant, the host communities are working with state officials to fund the rail and infrastructure improvements needed to tie the plant to local customers.

Berkshire Biodiesel LLC is the Massachusetts-based subsidiary of NorthWinds Biodiesel LLC, which in turn, is the biodiesel development arm of NorthWinds Renewables, a renewable energy merchant banking firm in Harrison, NY. The company has other biodiesel plants in operation currently, or on the drawing board.

“We are also looking at a couple of sites in New York and Connecticut,” says Garth Klimchuk, president of Berkshire Biodiesel.

Once completed, the new Pittsfield plant would produce biodiesel fuel made from vegetable oils, especially soybean oil.

According to a press release from the company, biodiesel is a clean-burning alternative to fuel produced from domenstic, renewable resoures, and contains no petroleum. It can be used in pure form (known as B100), or blended at any level with petroleum diesel and heating oil, to create a fuel that can be used in engines, boilers, home furnaces, and power generators, with no modifications needed to any of these.

The company says biodiesel is simple to use, biodegradable, non-toxic, and essentially free of sulfer and aromatics. It is actually produced through a process called transesterification, where glycerin and biodiesel are created through a separation process.

Klimchuk, says the company is presently in the permitting stage, and expects to break ground in September. The plant is expected to begin actual production in late 2008.

It is no accident that the Pittsfield site was targeted for the new plant. Klimchuk says the site was chosen for three reasons:

First, “We found that as we began our investigation for a new site, that with the town of Pittsfield, we would get tremendous support,” Klimchuk says.

Secondly, “Having gone to Pittsfield personally for about 20 years [he has family in the region], I have a strong appreciation for how good the people are,” Klimchuk says.

Third, “There is a lot of good industrial land available, good rail access, and we can serve a lot of markets very easily,” he notes.

That rail access is vital to the plant, which must receive vegetable products from agricultural suppliers, and in turn for shipping the final product to customers.

Once Pittsfield was initially targeted as a possible location, Berkshire Biodiesel met with local officials in the town of Dalton and the city of Pittsfield, since the site falls within both communities. Klimchuk says Berkshire Biodiesel explained carefully what they hoped to do with the property, how it would benefit the local area, and also what help the company would need to proceed.

The help most needed was in improvements to the local rail system, as it relates to serving the plant.

Coupled with Berkshire Biodiesel’s plans for the biodiesel plant, are plans to construct a new 2,500-foot rail siding, which would connect the plant to the adjacent CSX rail line. The Town of Dalton and City of Pittsfield have been jointly awarded a $3 million grant from the Commonwealth of Massachusetts to help fund the construction of the rail siding, which would be critical for transporting in feedstocks, and transporting the biodiesel fuel to the local market.

The project was not a hard sell in Pittsburgh, Klimchuk says, since the city is thrilled to have the Ashuelot Park lot redeveloped, and is supportive of alternative fuel initiatives.

“Pittsfield is a truly Green City, as we are breaking ground into the increasingly important and growing renewable energy industry, with one of the first large-scale biodiesel facilities in the Northeast,” Pittsfield Mayor James M. Ruberto says in a recent announcement about the plant. “This new facility is an excellent example of how government can work with the private sector to encourage businesses that will create jobs, drive the economy, and improve our environment.”

NorthWinds Biodiesel has big plans all around for 2007, with other sites being considered in New York and Connecticut for similar plants. Currently, there are approximately 105 biodiesel plants in the U.S., Klimchuk says, producing a combined 850 million gallons of biodiesel fuel annually.

Klimchuk says his first-hand knowledge of the Pittsfield area has been a tremendous help in approaching local officials and the general public about the company’s plans for the Ashuelot Park site. He says the city is very supportive of the project, and has been helpful “making sure we are meeting with the right people, and helping us to set up those meetings.”

During the construction process, Berkshire Biodiesel expects to employ approximately 100 temporary construction workers. Once finished, Klimchuk says the plant will employee approximately 25 to 30 full time employees, and have a multiplying affect of 100 to 150 additional jobs impacted in the local market.

The property is currently owned by Crane & Co., Inc. It includes nine acres of land and a large building that was previously used as for research and development by Beloit Corp. Crane acquired the property by two phases in 1999 and 2001, and Berkshire Biodiesel will be leasing the property from Crane.

According to Klimchuk, once the plant is complete, Berkshire Biodiesel plans to serve a market of an approximate 200 mile radius from the facility.