Finance Blog number 1

The city of Groveland is poised to become home to one of the largest concentrations of biodiesel plants in the U.S., should plans to operate three facilities there by early next year come to fruition.

Only Houston, with two in operation and another two planned later this year, would exceed that. In fact, the National Biodiesel Board lists only four plants total in Florida.

Biodiesel plants make biodiesel fuel with used fryer grease, animal fats and grease collected in restaurant grease traps.

Together, the three Groveland plants — CleanFuel LLC, Southern Energy Holdings Inc. and Summit Biodiesel — represent a significant investment in the area: Southern Energy estimates its operation alone cost

$5 million — and the three firms could create up to 100 jobs, paying a minimum of $15 an hour.

Dottie Keedy, director of the Lake County Department of Economic Growth & Redevelopment, said the jobs being created through the biodiesel companies are significant for the area.

The companies also have ambitious 2009 sales targets for their operations: Summit Biodiesel, $3.8 million; Southern Energy Holdings, $9 million; and CleanFuel, $120 million.

CleanFuel, Groveland’s first biodiesel plant, was founded by commercial and retail real estate developer Lee Maher.

CleanFuel bought Silver Bullet Energy Inc., an existing biodiesel operation at 7432 E. State Road 50, last November for several million dollars. CleanFuel invested another several million in improvements, said Maher, who declined to give specific figures.

CleanFuel now produces 1 million gallons of biodiesel a year and plans to increase that to 5 million-6 million gallons annually. To do so, the plant — which now has 20 workers — eventually will add 10 more.

Maher, who has his sights set on becoming the largest biodiesel producer in the Southeast with his CleanFuel operation, has invested $20 million thus far in the industry cash till payday. He is building another plant near Allentown, Pa., and plans to buy two other plants next year.

Meanwhile, Southern Energy Holdings will start its operation next month, initially producing 350,000 gallons a month and, over time, increase to 1 million gallons a month. The $2.5 million plant, being built at 15380 County Road 565A, will employ 10 to 12 people.

It chose to open in Groveland due to a partnership the firm has with INX Eco, a Groveland company that’s supplying the raw material for the biodiesel operation.

The plant could be the first of three, said Sean Murphy, Southern Energy Holdings president. The University of Central Florida mechanical engineering graduate who now builds custom homes on Long Island, N.Y., said the company also wants to open plants on Long Island and maybe Jacksonville. "We plan to be in it as long as the U.S. is dependent on foreign oil."

Then there’s Summit Biodiesel, which now produces 1 million gallons annually at a small building on West Pine Street in Orlando. It will open a plant in Groveland early next year capable of producing 1 million gallons of biodiesel a year.

Its $1.1 million Groveland plant, which will have four workers, will be in a leased 4,000-square-foot building at 241 Sampey Road. The equipment for the operation should arrive in October, and the plant will open in January.