Genuine Bio-Fuel plans biodiesel plant in Caribbean

US biodiesel producer Genuine Bio-Fuel Inc is constructing a plant on the island of Puerto Rico in order to tap into the Caribbean and South American markets.

It intends for the $1.85 million plant to produce 12 million gallons (45.4 million litres) of fuel every year on the unincorporated territory of the US.

Genuine Bio-Fuel is building the facility just outside the southern city of Ponce, where full production is expected to commence in March, the company's executive vice president Jeff Lungo told Bloomberg in a telephone interview.

Currently the closely held Florida-based firm is already transporting biodiesel from its one and only operating plant in the Sunshine State to Caribbean islands at prices that can compete with other fossil-fuel imports, Mr Lungo explained.

By moving the operation closer to the target market, he will be able to sell the fuel at an even lower cost.

“Our biodiesel sells for on average between nine and 13 cents cheaper a gallon than ultra-low sulphur diesel,” he said.

“We’ve already been approached by a number of electrical companies.”

Genuine Bio-Fuel also boats proprietary technology that means it can produce biodiesel in a matter of seconds, rather than hours, and without generating any dangerous by-products in the process.

Production on the new, 35,000 square feet facility began only last week. When it does open in a few months time, it expects to be employing between 12 and 18 people.

However, the region will see knock-on benefits as Genuine Bio-Fuel intends to use multi-feedstocks and raw materials from Puerto Rico and surrounding islands.

“This is an exciting time for Genuine Bio-Fuel. This expansion will allows us to be a global competitor in the alternative energy industry, but our mission will ultimately remain the same. With Caribbean Bio-Fuel we strive to build an environmentally responsible facility, create jobs, and help spur economic growth in this region," Mr Longo said.

Lauren Steadman