November 2004 Newsletter

ATP Primes Local Biofuel Production

November, 2004

American Premix Technologies (APT) of Creston said it's found the magic formula to bolster local biodiesel infrastructure.

By Christmas, APT plans to put its first oil seed crusher online in the central Washington town of Quincy. The crusher would process about 150 tons of canola seed daily. Oil from the Quincy operation will most likely be fed to regional biodiesel refineries, said APT technical services manager John Graff.

"It will probably go straight to the 1-5 corridor," he said. "We're confident all the oil will be taken."

APT's ultimate goal, according to Graff, is to be known throughout the region as the low-cost producer, the largest producer and the only local producer. No later than next summer, the company plans to open its second crusher in Creston. The Creston crusher would process 200 tons of seeds daily. The company is also scouting for a third Northwest location.

Key to APT's market success, Graff said, will be its efforts to cluster other biofuel and biolubricant businesses in the immediate vicinity of its crushers.

In Creston, APT created Columbia Oilseeds LLC, a joint venture with Stetner Seeds of Ephrata, to attract other biofuel businesses, including a biorefinery that may be built by Sustainable Systems LLC of Missoula, Mont., according to CEO Paul Miller. Sustainable Systems' plan is to turn a variety of seed stocks into value-added products, including biodiesel fuel, lubricant oils and animal meal mixes.

Miller said Sustainable Systems' pilot biorefinery in Missoula, which produces 5,000 gallons of biodiesel per month, has helped the company see the pitfalls in bio-based business models. For example, lubricants from seed oil have a higher profit margin but a smaller anticipated market, Miller said, while the reverse appears to be true for biodiesel.

"We're addressing the whole opportunity of oil seed products," Miller said. "But it takes a visionary and patient investor. It's a long term build-out of a sustainable industry."