Galveston Biodiesel Plant Owners to Spend $15 Million on Facility Upgrades, Legal Claims
January 14, 2008
• by Staff
--- The owners of a biodiesel plant here said they plan to spend $15 million on facility upgrades as well as legal claim settlements, using newly acquired money from an original investor in the project.
Galveston Bay Biodiesel said it will spend $2.2 million to settle lien claims filed last year by a construction firm and other vendors who said they weren't fully paid for their work on the plant, the Houston Chronicle reported. The rest of the money will be allocated to plant improvements.
Galveston Bay Biodiesel last month filed suit against Chevron, alleging that the oil giant failed to fulfill its investment commitments to the project, leading to the plant's financial woes. But Chevron has maintained that it has met all its contractual obligations to the project.
The biodiesel plant opened last spring, with owners predicting that the facility would eventually expand to produce more than 100 million gallons of biodiesel per year. The new investment is expected to bolster production to 40 million gallons per year.
Originally posted on Fleet Financials