American Energy Producers Inc.’s partially completed 60 million-gallon-per-year biodiesel plant in Montana is being put up for auction after the project stalled due to a lack of funding.
Maas Companies will hold the auction on March 10. The US$60 million plant is located at a 508-acre site, with plans to add a 35 million-bushel-per-year soybean processing facility.
American Energy Producers Inc. is a new-generation producer cooperative that began construction with $35 million of funding. Work halted on the project when additional financing could not be obtained due to unforeseen economic challenges.
The company’s owners will consider a partnership to complete the plant or an entirety purchase offer prior to auction, Mass said. The initial design was for a biodiesel plant with the addition of a soybean processing facility. Currently, the site has new gas pipeline in place, rail access with plans for a 110-car oval rail track. The planned feedstock was refined and bleached soy oil, with plans to supplement with animal fat and waste cooking oil.
At the time construction stopped, approximately US$38 million had been spent for construction and engineering work. The majority of the equipment has been purchased and is onsite.