Nova Biosource Fuels has completed its second funding of approximately $12.0 million under its $41 million senior secured credit facility with WestLB AG, it was announced today (20th March). Approximately $22.6 million has been borrowed to date under the facility.

The proceeds of the loan were used to pay project costs and related fees and expenses in connection with the on-going construction of its 60 million gallon per year biodiesel refinery in Seneca, Illinois. The refinery is mechanically complete and Nova is in the process of making additional funding requests under the credit facility in order to pay subcontractors, procure feedstock and commence commissioning and start-up of the refinery.

"We continue to remain on track to start up the Seneca plant in March as we have reported earlier, and we expect to achieve substantial completion of this biodiesel refinery approximately 60 days after start-up with final completion by late summer," said Kenneth T. Hern, Chairman and CEO of Nova.

"As we continue to make progress with preparing the refinery for commissioning, we believe we are well on our way to producing ASTM D6751 quality biodiesel using high free fatty acid feedstocks soon. Our logistics partners, including Lipid Logistics and ConAgra Trade Group, have done a superb job in procuring feedstock and arranging for biodiesel purchase orders to make the start-up process proceed as smoothly as possible."

---

Share this article: