Site Selected For 30 Million Gallon Per Year Gulf Coast Biodiesel Plant

Houston - TexCom, Inc. announced that it has signed a letter of intent with LBC Houston, LP to build and operate a new 30 million gallon per year biodiesel plant at LBC's bulk liquids terminal in Seabrook, Texas.

TexCom plans to construct the multi-million dollar plant that will convert virgin soybean oil into biodiesel and utilize existing on-site storage capacity and other terminal facilities under a long-term lease from LBC. Project design includes the capability to store conventional petroleum diesel, allowing TexCom to blend and market B20 and other biodiesel blends as well as B100. Feedstock will be brought in via barge to the site, located near the Houston Ship Channel, to produce the renewable fuel. The company intends to contract with biodiesel plant builder Lurgi PSI (Memphis, Tennessee) to provide the process technology, design and construct the plant, utilizing their continuous transesterification process.

TexCom is in the process of securing funding for the project with a goal of getting construction underway by mid fourth quarter of 2005. Plans are to have the plant fully operational and producing biodiesel by the fourth quarter of 2006.

Louis A. Ross, President of TexCom states, "By locating our biodiesel production unit at an existing bulk terminal facility, we will be reducing our initial capital cost for the project and, at the same time, increasing our capability to serve the local fuels distribution market."

Mike S. McKinney, President of LBC Houston adds, "By hosting TexCom's Biodiesel plant at its terminal, constructing storage, loading and blending facilities and providing storage and handling services to TexCom, LBC takes a strategic interest in the supply chain of renewable fuel components."

SOURCE: TexCom, Inc.