Direct Fuels has opened a biodiesel production facility at its refinery in Euless, Texas. This makes the company one of two producers of biodiesel in North Texas, yet the only one located at a fuel terminal so biodiesel can be blended directly into petroleum diesel, as per customer need.

Direct Fuels has implemented a production technology that allows significant flexibility in terms of the choice of feedstock used to produce the biodiesel. Initially, the company will utilize a blend of different animal fats, but that will change depending upon market conditions.

The Direct Fuels facility is designed with a sophisticated blending system at its truck loading rack so that customers can request any blend that meets their needs - whether it is pure biodiesel (referred to as B100), a five percent blend of biodiesel (referred to as B5), or something in between. Production started last month, and the Direct Fuels facility has the capacity to produce more than 10 million gallons of biodiesel per year.

This facility follows Direct Fuels' January opening of an 11-acre ethanol distribution complex in Euless, and helps solidify the company's position as a "green" energy company serving the Dallas-Fort Worth area.

"The opening of our biodiesel facility is very timely, as petroleum-based diesel prices soar to record highs," said Warren Bonham, president of Direct Fuels. "The plant is centrally located in the DFW Metroplex, and offers diesel retailers and distributors easy and convenient access to both alternative fuels, as well as petroleum fuels. With our fully operational biodiesel and ethanol operations, combined with our existing transmix operations, we expect more than 40 percent of our 2008 revenue to be generated from renewable and recycled fuel."

Direct Fuels has constructed a dedicated in-house laboratory facility as part of the biodiesel operation. According to Bonham, the company is committed to producing a very high quality product and the in-house laboratory allows real-time testing to ensure that all biodiesel produced will meet the appropriate product specification.

Direct Fuels has also started the process of obtaining BQ-9000 accreditation from the National Biodiesel Accreditation Program, which means they are undergoing a rigorous assessment of their biodiesel facilities to make sure they meet the highest quality production, storage, manufacturing, shipping and distribution practices. The company expects to complete the process by the end of the year.

According to the National Biodiesel Board, biodiesel provides the best greenhouse gas mitigation strategy for today's medium and heavy duty vehicles. A 1998 biodiesel lifecycle study, jointly sponsored by the U.S. Department of Energy and the U.S. Department of Agriculture, concluded biodiesel reduces net carbon dioxide emissions by 78 percent compared to petroleum diesel. The fuel also has the highest "energy balance" of any transportation fuel, meaning for every unit of energy it takes to make biodiesel, 3.5 units of energy are gained.