Will startup build world's biggest biodiesel plant?

Calling itself a biodiesel company "not out trying to go public and whore itself out for investors," a small, aggressive California startup is planning to build a 320 million gallon per year biodiesel refinery in Chesapeake, Virginia.

That's more than ten times the size of typical biodiesel plants, and three times the size of the 90 million gallon per year plants being built in Malaysia.

And it's bigger, still, than the 100 million gallon plants being built by Seattle's Imperium Renewables (which, incidentally, last month announced its plan to go public—see the Cleantech Group's Now official: big biofuel IPO.)

Imperium, in a pre-IPO quiet period, declined to comment for this story.

To be situated on the southern branch of the Elizabeth River and operate around the clock, the Virginia Point Biodiesel facility planned by SE ("Smiling Earth") Energy [ed.: a company with the most unusual logo we've seen in a long time] is expected to cost $532 million, all of which has already been financed, the company claims.

Proximity to major military bases was a main draw for locating in Chesapeake, as the company hopes to count the military among its future customers. But SE says it already has off-take agreements for its entire production.

SE Energy claims its plants have six key technologies that make them "the most technologically advanced biodiesel facilities being built today," including patented processes for creating a batch of biodiesel in 3.6 minutes with 0.007 total glycerin, using 25 percent less methanol than other processes.

In a written statement by company principal Cliff Cowles, SE claims its process does not produce any wastewater. Nor will it produce any air emissions, according to permit applications filed with the Chesapeake Planning Department.

Most of the refining equipment is to be enclosed in two 100-foot tall semi-translucent domes, and an array of 47 outdoor tanks will be designed to look like "sculpture," company representatives recently told the local Virginia Pilot newspaper.

Plans call for between 15 and 20 tanker trucks and about 30 rail cars per week hauling away biodiesel, as well as ships delivering jatropha oil every 14 days.

While it may have technology savvy and management experience in building biodiesel plants before, SE Energy is a little rough in its communications.

Company spokesman Bernie Mock got the Cleantech Group's attention when he pitched his startup as a "biodiesel company that is not out trying to go public and whore itself out for investors but is actually doing something to make a difference."

The company plans to start making its difference soon.

Construction is to begin this summer with a completion date in early 2008. SE Energy is currently negotiating the purchase of its 44-acres of waterfront real estate and final permits, it says.

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