[HoosierRon]

South Sioux plant will use beef tallow to make biodiesel

SOUTH SIOUX CITY -- In a week's time, Beef Products Inc.'s plant in South Sioux City churns out about 22 million pounds of beef tallow.

That's a whole lot of fat. Soon, most, if not all, of it will be used to power semi-trucks, pickups and other vehicles that run on diesel fuel.

BPI, the world's largest producer of lean boneless beef, has teamed with a biodiesel producer, Natural Innovative Renewable Energy. The two firms on Friday formally unveiled plans for a 60-million-gallon-per-year biodiesel plant, expected to create three dozen new jobs.

The company hopes to start construction this fall or early next year, said Jim Venner, a Breda, Iowa-based consultant for the biodiesel project. After the startup, production could begin as early as 18 months later, he said.

The $100 million project would become Nebraska's largest biodiesel plant, and the first in the state to make the clean-burning, renewable fuel from animal fat.

Gov. Dave Heineman, who headlined Friday's groundbreaking ceremony, said he expects Natural Innovative Renewable Energy to help elevate the Cornhusker state's biodiesel industry to the same level as its corn-based ethanol production, which now ranks No. 2 in the nation.