Clayton, DE November 21, 2005 – Standing at the construction site on School Lane in Clayton, Delaware, Senator Thomas Carper, Congressman Michael Castle and officials from the USDA Rural Development announced over $5.7 million in loan and grant funds that have supported Delaware’s first biodiesel manufacturing facility being built by Mid-Atlantic Biodiesel Company, LLC. "I am incredibly proud of the leadership role that Delaware will take in manufacturing biodiesel, a clean-burning alternative fuel.  I thank the USDA for their continued support in this effort.  Once expanded, biodiesel will help states around the country meet their air pollution standards and also help to reduce our dependency on foreign oil," said Senator Tom Carper.   "The benefits to Delaware would be significant, particularly to the farming community.  Delaware has one of the highest concentrations of poultry production in the United States, and as such, the state has made soybeans – which are used to make the meal for the poultry – the largest crop in the state, resulting in the over-production of soybean oil.  Manufacturing biodiesel would provide a positive way to use this byproduct and positively impact Delaware’s economy and environment."  

"I am extremely pleased to hear of the $150,000 going to the Mid-Atlantic Biodiesel Company to continue their work on construction of their manufacturing facility.  This initiative will provide important economic benefits to the state--from the agriculture to the manufacturing sector and all Delawareans will benefit from cleaner air.  Additionally, biodiesel represents the fastest growing renewable fuel in America, and Delaware's ability to use its number one crop, soybeans, to make this fuel alternative, is a great asset.  As I've repeatedly said, supporting the use of alternative sources of energy, like those being made right here in Delaware, is a step in the right direction to decreasing our reliance on fossil fuels, both foreign and domestic," said Congressman Mike Castle.

Today’s check presentation marked the latest round of funding in the form of a $150,000 grant that USDA Rural Development has committed to support the project. Mid-Atlantic Biodiesel Inc. was 1 of 171 successful applicants to receive funding through the agency’s nationally competitive Value-Added Producer Grant program that is designed to allow America’s farmers and producers to transform a raw commodity into a product that will reap far greater rewards. In all, $14.6 million in grant funds were provided to projects located in 42 states with Mid-Atlantic Biodiesel, Inc. as the only successful applicant in Delaware. "What better way to promote the wellness of our earth than by combining farming and modern science," said Peter Thomas, Administrator for Business Programs USDA Rural Development. "Farmers are the primary caretakers of our land, and this new business startup fosters a better environment for the future of our landscape and the air that we breathe."

"For 3 years, Rural Development has supported every step that this project has taken to become a reality," said Marlene Elliott, USDA Rural Development State Director. "Our mission is to help increase economic opportunity and improve the quality of life in rural America. This project is doing just that and much more by adding value to Delaware’s #1 crop – soybeans, by helping to diversify farm income, by supporting the Bush Administration’s energy policy of creating a renewable energy resource, by creating jobs, and most importantly, by preserving farming for future generations. It’s a return of the people’s money, your taxpayer dollars of which we can all be proud."

Outline of Rural Development’s investments in the Mid-Atlantic Biodiesel Project:

2003 – $60,000 Rural Business Enterprise Grant to the State of Delaware to help develop a feasibility study and business plan for the biodiesel facility.

2004 - $500,000 Renewable Energy and Energy Efficiency Grant to Mid-Atlantic Biodiesel Facility to help with the construction of the plant.

2004 - $5,000,000 Business and Industry Guaranteed Loan made by Greater Atlantic Bank with a 90% guarantee by USDA Rural Development that will provide the protection of the U.S. government for financing of the project. The loan supports the construction of the project with no anticipated cost to the government.

2005 - $150,000 Value-Added Producer Grant to help with operating expenses for the facility.

Construction at the 6 acre site began in early June 2005 and is targeted for completion in April 2006. The overall cost to startup the 5 million gallon per year biodiesel facility is expected to be around $9 million dollars. In addition to USDA, the project has the support of farmers, private investors and the State.

Marty Ross, a Sussex County farmer and former President of the Delaware Soybean Board, has been the mainstay behind this project.  Ross currently serves as the President of Mid-Atlantic Biodiesel Company, LLC and sees this project as a way to leverage his assets to subsidize his farming habit.  "The project makes sense," said Ross.   Biodiesel production complements the normal use of soybean oil as a vegetable oil because used vegetable oil can also be processed into biodiesel. And, using the excess soybean oil we have for biodiesel production adds value to every bushel of soybeans we produce. " The biodiesel plant will not be a petroleum refinery, so there will be no blending of the oil with a petroleum product on site.  The facility in Clayton will process the oil to 100 percent biodiesel (B100).  B100 is a non-toxic, non-hazardous, non-flammable fuel that also acts as a solvent in some oil spills. The B100 will be marketed by World Energy Alternatives to fuel distributors both locally and throughout the Northeast.

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