BioFuels Journal

Salisbury, MD -- Consistent with its corporate commitment to agriculture and environmental stewardship, Perdue Inc. has formed Perdue BioEnergy LLC, a new company that will focus on the growing biofuels industry.

As the 12th largest grain company in the United States, with three soybean crushing plants and a deepwater port, Perdue is well-positioned to tap into this growing market.

The company currently partners with biodiesel and ethanol producers to provide feedstocks and to market coproducts.

In May 2006, Perdue signed an agreement to provide corn to Northeast Biofuels LLC for an ethanol plant to be built in Fulton, NY.

Already in place are agreements to supply soybean oil to biodiesel plants in New Jersey, Virginia, and Delaware.

Other contracts to supply grains and soybean oil to biofuels facilities are pending.

According to the American Soybean Association, production of biodiesel fuel has grown from 2 million gallons in 2000 to more than 150 million gallons projected in 2006.

Today, there are 65 operational biodiesel plants, with 50 more under construction.

The Renewable Fuels Association reports that 97 ethanol plants have a combined production capacity of nearly 4.5 billion gallons a year.

There are 35 ethanol plants and nine expansions under construction, with a combined annual capacity of more than 2.2 billion gallons.

"Biofuels are a rapidly growing part of our portfolio, and we will be actively involved in this developing industry," said Jim Perdue, chairman of Perdue Inc.

"Addressing the nation's energy needs through biofuels such as soy biodiesel and ethanol is consistent with our commitment to farmers, to the environment, and to agriculture in general."

Perdue Farms Grain & Oilseed Division purchases corn, soybeans, wheat, milo, and barley from farmers and dealers throughout the Mid-Atlantic and Midwest regions.

In addition to its import/export facility in Chesapeake, VA, the division manages and operates more than 40 grain elevators, transload facilities, and a fleet of railcars and barges.

The Grain & Oilseed Division's soybean crushing operations produce crude soy oil, which it converts into refined oil in its soybean oil refining operation, which is then sold for conversion into biodiesel.

PACMA, a commodities trading operation, and VENTURE Milling, a custom-blended protein feed manufacturer, enables Perdue to buy and sell feed ingredients in the domestic and international marketplace, providing a ready outlet for biofuel coproducts such as dried distillers grains.

"We see biofuels as a growing opportunity to expand markets for farmers," said Dick Willey, president of Perdue Farms Grain & Oilseed Division.

"Our network of grain facilities in Delaware, Florida, Georgia, Indiana, Kentucky, Maryland, New Jersey, New York, North and South Carolina, Pennsylvania, and Virginia enables us to buy grain from local farmers and dealers for further processing, feed manufacturing, and domestic and international merchandising. Biofuels and their coproducts offer another avenue, strengthening demand for U.S. crops."

In addition to providing raw materials and marketing coproducts from biofuel production, Perdue itself is a biodiesel consumer.

Following a successful trial, the company is currently using biodiesel in part of its fleet.

Beyond being a supplier of feedstocks, Perdue is actively exploring opportunities for equity positions in biofuel plants, through strategic partnerships, or building its own biofuel plants.

"Perdue BioEnergy will evaluate a number of options which will further leverage our vertical integration and built-in demand for biofuels and their co-products," Willey said.

"We are committed to the biofuels market as a supplier, producer, and consumer."

See Related Websites/Articles:

• Perdue Inc.

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