Genuine Bio-Fuel Inc., a U.S. biodiesel producer, is building a plant in Puerto Rico capable of producing 12 million gallons (45.4 million liters) of fuel a year to tap markets in the Caribbean and South America.
The $1.85 million facility, planned for just outside the southern city of Ponce, is expected to start full production in May, Jeff Longo, executive vice president for the Indiantown, Florida-based company, said today in a telephone interview.
Closely held Genuine Bio-Fuel is already shipping biodiesel from its only operational plant in Florida to companies in the Caribbean at prices competitive with fossil-fuel imports, he said. The Puerto Rico project, by being closer to the target market, will be able to furnish fuel even cheaper.
“Our biodiesel sells for on average between 9 and 13 cents cheaper a gallon than ultra-low sulfur diesel,” he said. “We’ve already been approached by a number of electrical companies.”
The project, which started construction last week, will use vegetable oils sourced from Puerto Rico and surrounding islands as feedstock, he said.