Cargill and the Missouri Soybean Association announced plans for a 40 MMgy biodiesel plant and a 30 million-pound food-grade glycerin refinery adjacent to the company's existing soybean processing facility in Kansas City. The facility will be jointly owned by Cargill and Paseo Biofuels LLC, a new entity to be formed by Missouri soybean farmers and the Missouri Soybean Association.

Cargill already operates a 37.5 MMgy biodiesel refinery in Iowa Falls, Iowa. Missouri has two small-scale commercial facilities in operation in Bunceton and Bethel. Agri-giant Archer Daniels Midland Co. is a partner in Mid-America Biofuels, a 30 MMgy plant under construction in Mexico, Mo.

Construction on the Kansas City project is expected to begin this fall depending on regulatory approval, according to Cargill. Paseo Biofuels is planning a $24 million equity drive that would make the facility majority-owned by Missouri soybean farmers. "This is a great opportunity for producers to get involved in adding value to their crops and farms," said David Durham, chairman of Paseo Biofuels. "By partnering with Cargill, one of the world's leading food and agricultural companies, we hope to utilize its technical and marketing expertise. Such teamwork would build long-term security in the rapidly changing biodiesel industry."

Recent reports show that more than 50 percent of Missouri farmers use biodiesel in their operations. The Missouri Soybean Association is a membership organization comprised of more than 1,700 soybean farmers from across the state.

Posted: 2:56 p.m. CDT Wednesday August 9, 2006