Ineos forms joint venture to expand biodiesel plant

Southampton, England-based Ineos said it formed a 70 million euro joint venture to boost capacity at its Baleycourt biodiesel plant in Verdun, France.

The chemical company plans to more than double the output at the rapeseed biodiesel facility to 230,000 tonnes, up from 110,000, in the second half of 2008.

"This new joint venture is a significant development in our ongoing investment program at Baleycourt that will substantially strengthen our position in the French market and is a platform for further significant growth in Europe," said Harry Deans, CEO of Ineos Enterprises, a subsidiary of Ineos.

"This is a major milestone in our plans to become Europe's premier biodiesel supplier with more than two million tonnes of biodiesel output from new Europe-wide investments by 2012, with at least half of this by 2010."

The venture, to be known as Ineos Champlor, is comprised of Ineos Enterprises, French farming cooperative Siclaé, and Neuss, Germany, oil-seed crushing group C.Thywissen.

Ineos said local farming cooperative EMC2 is also investing in a dedicated silo at an adjoining site that will serve the needs of the facility. EMC2 is a part owner of Siclaé.

The venture plans to build a new oilseed crushing unit and vegetable oil refining plant at Baleycourt.

Ineos said the expanded facility, in the heart of France's second largest oilseed producing region, would allow approximately 400,000 tonnes of locally produced rapeseed to be transformed into oil and then biodiesel.