Michigan Sugar in carrolton may soon produce bio-diesel

[patrick]

Soybeans soon could replace sugar beets at the closed Michigan Sugar Co. plant in Carrollton Township.

The state Department of Agriculture is reviewing plans to award a $65,000 grant to Michigan Sugar to study biodiesel production -- and if all goes as planned, crews will produce the fuel for the tractors and trucks farmers use to harvest the beets bound for Michigan Sugar's Bay City factory.

State officials said they should make the recommendation to approve the grant within the next few weeks.
We would use the grant money to hire engineers with experience in biodiesel facilities to see if it was feasible to build and operate a biodiesel plant at the Carrollton facility," said Ray F. VanDriessche, director of community and government relations for the sugar company.

The outcome of the study would determine the number of employees and how many bushels of soybeans it would take to operate such a facility, as well as how much fuel crews could produce there, he said.

Sugar officials suspended beet processing in Carrollton in late February 2005 but still use the plant as a storage and distribution center.

So far, the state has one biodiesel factory -- Ag Solutions Inc., which opened Aug. 18 in Gladstone.

Michigan soon may have two more -- Milan Biodiesel Co. of Milan expects to complete a production plant there this month, and Michigan Biodiesel in Bangor is preparing to open a plant there in October.

Officials with Liberty Renewable Fuels are toying with the idea of starting an ethanol plant and biodiesel operation in Gratiot County's North Star Township near Alma.

Ethanol comes from corn. Biodiesel comes from soybeans.

The proximity of Michigan Ethanol in Caro, which opened in November 2002, had a lot to do with the Michigan Sugar decision to focus less on ethanol and more on biodiesel, VanDriessche said.

Nationwide, there are 97 ethanol plants in operation, with another 35 under construction and a number of others in the planning stages. For biodiesel, there are 87 plants in operation nationwide, with 64 under construction and 13 existing sites undergoing expansion, said a spokeswoman with the National Biodiesel Board in Jefferson City, Mo.

"We've already completed a feasibility study for ethanol," VanDriessche said. "We completed that before we suspended operations at the (Carrollton Township) plant, when we were looking at options.

"We were studying long-range plans to keep our people working, but we weren't ready to make that move toward ethanol."

Michigan Sugar laid off or transferred 65 people at the Carrollton plant, VanDriessche said.

"There was a hope to restart sugar-processing operations there again," he said. "Now, as each year goes by, it looks less likely that we're going to do that. The final decision isn't made yet, but it's getting more unlikely all the time.

"There are soybean farmers all around us. There's an elevator nearby, the rail line is already in place, we're located just off the river.

"It has a lot of potential." v

[GP30M4216]

That explains what the new plant is going in along the CSX in Bangor. The remains of a spur with switch still in place are located right next to where this new plant is being built. From the sounds of this article about Carrollton, rail would be a nice thing to have and hopefully a necessity for an operation such as this, so I hope they rebuild the siding for their use in Bangor. That would be another customer along that part of the line for CSX and another place for D700 to serve. Good news!!

[cmgnnut]

One thing I would question is how much demand for the product is really there in this area and what would happen to the current use of the plant as food and fuel don't mix. Sounds like another "what if " just like the Bay County plan for the old Dow stuff on Wilder Rd. Good idea but won't fly....

[R Bedell]

I have read somewhere, that local Bay City business Karbowski Oil is jumping into the Bio-Diesel program and soon will be offfering it at their Distributorship.
In my opinion, this is a win - win situation. Less dependency on Foreign Oil, locally grown soybeans from the local farmers, and the local RR for the transporation (in & out) of the product.

[patrick]

you're just a tad bit late. Karbowski oil already offers bio diesel at all its facilities and is the areas only supplier of it in the bay area. They are also going to be building a plant in Bangor township in the next year.

[AARR]

If I'm not mistaken Patrick Monitor (MI Sugar) already does a fair amount of railroad business. Is there any speculation whether rail traffic will decrease or increase if it converted to biodiesel?

[sd70accsxt700]

Don the plant in Carrollton has been closed for some time, there has been little if any traffic out of that plant seince it has been closed.

[AARR]

Maybe I misread Patrick's message. I thought he was talking about the Monitor Sugar plant in Bay City converting to a bio-diesel plant. Is he talking about the closed-plant in Carrollton re-opening as a bio-diesel plant? That would be cool!

[AARR]

I meant what the article said...Patrick was simply the poster. It's old age fellas...be patient with me

[Railnut]

Carrollton has been closed for a little over a year now..cant recall why they closed it at the moment.
Dave C

[patrick]

yes don, they're going to convert the closed plant to produce diesel. monitor won't change. something of note though for you this year. Its been said that there will be NO beets shiped from thumb by rail to bay city this year.

[Railnut]

No Beats out by Rail..WHAT!!!!??? The loaders at Deckerville were set up, and hoppers spotted at the loaders..where are they going then?? I haven't been up to Ruth to see whats going on up there yet.
Bay City was the only plant able to recive beet's, correct?
Dave C

[patrick]

loaders are set and hoppers in place? you sure? Crash told me, "No beets by rail this year" humm.. more bad info from a railroader. what a huge suprise.

[cmgnnut]

Hoppers were there last night just off the main springs looked like they were loaded

[patrick]

like I said.. I prolly got bad info. I'll keep watch for them since i drive through monitor sugar each night.

[GJ]

Correct Me Fella's...but I remember somewhere
that the operations in Carrollton closed down
due to the fact that more of the thumbs farmers
were haulin their products up to that place in
Sebawaing or is it Unionville...all I know is that
their is a huge Sugar Factory up their too...and
if memory serves Me thats why Carrolton opted
to close....hope this helps...not sure...but any
reopening of large scaled business like this along
rail lines...definitely is a boost or a plus...I would
think so.

Thanks,GJ

[AARR]

They closed Carrollton because output exceeded demand and Carrollton is close to Bay City's plant. Bay City is newer and more state of the art and could handle the additional capacity. Sebewaing is a small plant but Caro and Croswell are good sized.

[Railnut]

GJ..thet plant you are refering too is in Sebewing.
Croswell is the largest in the thumb..but Caro has a little more out bound traffic(less storage space).
Yeah, the cars were spotted at the loaders in Deckerville, with more waiting on the elevator siding.
Dont belive EVERYTHING a railroader says..remember..the 3838 was to be scrapped, and her parts were to go to the TPW unit...yeah.
Dave C