FUMPA BioFuels - Redwood Falls, MN
Product: Biodiesel fuel, Fuels from Biomass
Began Operations: December 2004
Maximum Production Capacity: 3.2 million gallons/year
Current Production Capacity: 2.9 million gallons/year
Primary Feedstock: Soybean oil, animal fats
Jobs Created: 10 Full-time jobs created
Minnesota is the first state to require the use of biodiesel fuels and FUMPA BioFuels, located in Redwood Falls, Minnesota in the southwestern area of the state, is the first refinery to come online producing biodiesel fuel to meet the state mandate. Farmers Union Industries is the parent company of FUMPA BioFuels, the producers of Northland Choice biodiesel fuel.
CDS worked with FUMPA BioFuels to update a feasibility study and business plan in preparation for development of the new facility. These documents were also used as part of a $500,000 USDA Working Capital Grant that CDS wrote and submitted for the organization. The grant was awarded in December 2004 and provided FUMPA BioFuels with the financing needed to purchase inventory and fund other working capital requirements during the initial months of start-up.
“In order to receive the working capital grant, we had to demonstrate we had an acceptable feasibility study completed and a business plan in place,” says Chuck Neece, Director of FUMPA BioFuels and Director of Research Development. While these documents had been done internally, they needed to be updated to meet USDA requirements. “CDS knew how to modify our current documentation to meet those requirements. Their involvement brought third-party credibility to the project.”
CDS has both the experience and connections that made the process efficient in terms of time and money, Neece notes. “We have seen what other people spend on grant writing,” he says. Large grant writing fees cut into the amount of funds available for actual project costs. “We feel that when you compare the service we received, it was an efficient use of funds and we had more money to use for the project in the long run.”
Located at Central Bi-Product’s site, the refinery uses a variety of feedstock and animal fats in the biodiesel production process. “It’s a true multi-feedstock operation,” Neece says. The company expects to increase overall capacity later this year and reports that margins are on target with projections.