The Seabrook plant, located at the LBC Houston LP terminal, includes the capability to store conventional petroleum diesel, allowing TexCom to blend and market B20 and other biodiesel blends as well as B100.
The facility is the first of several biodiesel production sites that TexCom currently plans to build and operate in the south-central United States.
The facility will include the capability to store conventional petroleum diesel, allowing TexCom to blend and market B20 and other biodiesel blends as well as B100.
In connection with the project, TexCom is negotiating with Top Water Management, LLC (an affiliate of PLC) to enter into a marketing agreement for sales and distribution of B100 and B20 produced at the new Corpus Christi facility.
TexCom, which owned 83.2% in MBES, said it would pocket some USD11m from the sale, after income taxes.
The divestment frees Texcom of several contractual obligations that were associated with MBES while enabling the company to pursue an aggressive expansion strategy.
"USRG is an ideal equity partner for TexCom's first biodiesel production facility, adding additional financial strength to the venture," said Lou Ross, president of TexCom.
"USRG's investment in TexCom for Houston Biodiesel LLC is the first milestone in what we intend to be a long partnership," said USRG Managing Partner James McDermott.
According to TexCom, the facility will have an annual production capacity of 35 million gallons, using soybean oil as a feedstock.
"We have been working diligently for the past two years to put ourselves in position to enter the biodiesel business," said TexCom president Lou Ross.
"By locating our biodiesel production unit at an existing bulk terminal facility, we will be reducing our initial capital cost for the project and, at the same time, increasing our capability to serve the local fuels distribution market," said TexCom president Louis Ross.
TexCom noted that construction of the plant could begin before the end of the year, while production could start by the end of 2006.