Bakersfield biodiesel plant gets state grant

 BAKERSFIELD

 February 11, 2014

•  Crimson Renewable Energy awarded $5 Million

•  “Will facilitate more rapid expansion of plant capacity at Crimson’s Bakersfield biodiesel plant”

A Bakersfield biodiesel refinery will be expanded thanks in part to a $5 million grant from the California Energy Commission’s Alternative and Renewable Fuel and Vehicle Technology Program.

Crimson Renewable Energy LP of Denver, Colo., the refinery’s owner, says the funding will move it toward development of commercial-scale biofuels production facilities in California that can sustainably produce at least 15 million gallons per year of low carbon transportation fuels.

"As the landmark Low Carbon Fuel Standard continues to foster the adoption of lower carbon … we have sought to expand our production of ultra-low carbon renewable transportation fuel to meet that demand," says Harry Simpson, president of Crimson Renewable Energy. "The funding and vote of confidence provided by the California Energy Commission will facilitate more rapid expansion of plant capacity at Crimson’s Bakersfield biodiesel plant – dramatically increasing production of ultra-low carbon biodiesel and enhancing the company’s sustainability."

Crimson has already completed certain portions of its engineering and design work, and has begun the process for obtaining all necessary permits and procuring equipment.

Crimson expects to begin construction of the first portions of the expansion project in the spring, and realize initial production increases in the second half of 2014. The expansion project will also allow it to increase the use of ultra-low carbon materials such as corn-oil byproduct from ethanol plants, and utilize a broader range of raw materials, including newly emerging sustainable materials, such as algae oil, the company says.

"With the expansion of its Bakersfield biorefinery, Crimson is poised to become the state’s largest producer of sustainably produced, low-carbon biodiesel, which will have 85 percent lower greenhouse gas emissions than conventionally produced diesel," says Randy Roesser, deputy director of the Energy Commission’s Fuels and Transportation Division

Crimson estimates that upon completion in Spring 2015, the expansion will increase annual economic activity at its Bakersfield plant by $40 million The expanded Crimson facility will also boost California’s production capacity to approximately 50 million gallons per year.

http://www.centralvalleybusinesstimes.com/stories/001/?ID=25198