ALEXANDRIA, La. --- Allegro Biodiesel Corp. has signed a 40-year lease with the Alexandria Regional Port Authority to occupy port facilities previously used by the Petron oil company. The lease gives Allegro control of offloading facilities. Allegro will also purchase Petron's fuel storage tanks. The company hopes to trim transportation costs by barging its soybean oil on the Red River, Gannett News Service reported. Allegro's Pollock plant is now producing about 1 million gallons per month, company officials told Gannett. But the company hopes to reach 20 million gallons a year by 2008. A new Louisiana law mandates that 2 percent of gasoline sold in the state must be agricultural-based when biodiesel production in the state reaches 10 million gallons a year, ethanol production reaches 50 million gallons a year or production of another alternative fuel reaches 20 million gallons a year.

Originally posted on Fleet Financials