HOUSTON --- H2Diesel Holdings Inc. announced it has placed into service its first biofuel production plant, a 3 million gallon per year pilot facility, jointly developed with Twin Rivers Technologies L.P. The plant, located at Twin Rivers' facility in Cincinnati, represents H2Diesel's next step in commercializing its new technology for the manufacture of biofuel from a variety of vegetable oils and animal fats. Major equipment for the facility has been provided under lease by Sonic Corporation of Stratford, Conn. The facility will be used initially to manufacture fuel for H2Diesel's application testing program, and then later for early commercial sales until a full-scale production plant is completed. As previously announced, H2Diesel is negotiating with Twin Rivers to reach definitive agreements covering the siting, construction, operation and management of a proposed 25 million gallon per year production facility. Under current plans, H2Diesel expects to locate this plant at Twin Rivers' existing facility in Quincy, Mass., in 2008.

Originally posted on Fleet Financials