Dexter biodiesel plant operational in February

The first biodiesel plant in Southeast Missouri is set to begin operations in early February.

Global Fuels LLC, owned by Dexter businessmen Jerry Bagby and Harold Williams, is a nearly $5 million facility expected to annually produce 3 million gallons of 100 percent pure biodiesel -- B100 -- from soybean oil.

The biodiesel will be sold to distributors who will blend it with petroleum-derived diesel fuel in three different percentages, and at the pump it will be called B5, B10 or B20.

Bagby, who also owns Bagby Investment Consultants in Dexter, said the plant is completed and testing and calibration of pumps and other equipment is currently under way.

"It takes a couple of weeks to get everything in order, but we should have fuel to sell by early February," said Bagby. "From the time we get the soybean oil, it will take about four days to make the biodiesel."

Bagby said it will take 60,000 acres of soybeans to produce the 3 million gallons of biodiesel Global Fuels plans to put on the market. He said the business will buy soybeans and have another company crush them. The soybean oil will be delivered to Global Fuels in fuel tanker trucks. After the oil has been processed, it will be sold to fuel companies.

"I was just talking to a fuel company and they said they were completely out of B100, so they're waiting on us," said Bagby, adding his company has 12 employees and will be operating 24 hours a day, seven days a week.

Williams said that with three major transportation corridors and intense agriculture in the area, the need for diesel engine fuel is very large and continues to grow.

"We expect the demand to be about equally divided between trucking and agriculture," said Williams.

Janet Coleman, economic development coordinator at the Dexter Chamber of Commerce, said the plant is the first facility to be built at the 55-acre Stoddard County Ag Complex on County Road 731, just outside Dexter. She said the complex is believed to be the first one in the region dedicated solely to agricultural activities.

Coleman said other businesses are making inquiries about locating at the complex. The biodiesel plant is a kind of incubator business that hopefully will be a magnet for more agriculture-related businesses to build there, she said.

Gary Capps, economic development coordinator of Stoddard County, said the federal government has recognized the commitment of Bagby and Williams to the success of the plant by reimbursing them for part of the cost. On Dec. 21, Greg Branum, state director of USDA Rural Development, presented the men a check for $500,000.

"This last fiscal year there were only two grants for renewable energy in the entire state of Missouri," said Branum. "And this is one of them."

Bagby said the 12,400-square-foot plant will likely be expanded.

"We have plans to enlarge the operation. We have the infrastructure in place," he said. "We might triple our production after two years."

Besides producing biodiesel fuel, the plant will also produce glycerine as a by-product. Glycerine has uses in soaps, lotions, candles and paint.