Expanded Biodiesel Plant Opens in Oregon

Pacific Biodiesel has announced that a five million gallon expansion of it’s Salem, Oregon biodiesel production plant is now open. The Sequential-Pacific Biodiesel LLC (SQPB) plant has been producing biodiesel since 2005. The plant is expected to reach full capacity in November of 2008.

Pacific Biodiesel’s plant currently processes recycled cooking oil from restaurants and food processors such as Burgerville and Kettle Foods, into close to one million gallons of biodiesel each year. In 2006, SQPB also processed 20,000 gallons of canola oil grown in Eastern Oregon.

On July 12, 2006, the Portland City Council voted to approve a citywide renewable fuels standard (RFS). The standard became effective July 1, 2007 and requires a minimum 5% blend of biodiesel in all diesel fuel sold for vehicle use within the city limits. This City of Portland ordinance expanded the annual market for biodiesel in Oregon from four million to eight million gallons per year.

Additionally, a statewide Renewable Fuels Standard (RFS) was included in Oregon’s Biofuels Bill (H.B. 2210) to mandate a statewide biodiesel blend. When in-state production reaches five million gallons per year using raw materials from the Pacific Northwest, the statewide RFS will take effect. The RFS will increase annual demand for biodiesel by approximately 10 million gallons, to a total of approximately twenty million gallons of biodiesel per year.

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