Northeast Biodiesel, a cooperative established in 2008 to produce 1.75 million gallons of biodiesel annually from recycled vegetable oil, has announced it will sell its facility located at 179 Silvio O. Conte Drive.
In an interview on Wednesday, President Lynn Benander attributed the closure to several factors, including technical difficulties with the plant’s processing equipment and 5,000-gallon tank, substantial debt, and insufficient support from state and federal authorities.
“We’ve spent years waiting for the right conditions to launch operations, but now it’s clear that the environment isn’t conducive to success. Our debt load makes it impossible to thrive in today’s regulatory landscape,” Benander explained. “Everyone involved was aware of the risks when we invested, and it’s tough to let the workers go. Many have put in significant effort and resources to make this venture a reality.”
The initiative to establish the plant was first announced in 2004 by then-U.S. Representative John W. Olver, who secured a $300,000 grant for renewable energy to kick-start the project during a press conference at the Cooperative Development Institute.
Although the facility aimed to commence operations in 2018, financing challenges delayed the opening. In 2022, Northeast Biodiesel refinanced the project with about $1.3 million in loans from major institutional lenders, including $500,000 from MassDevelopment and additional support from various community investment funds.
The cooperative had anticipated launching in January, but by the time they contacted the IRS for biodiesel sampling to qualify for a federal incentive, funds had dwindled.
“The permitting and compliance processes at state, local, and federal levels significantly extended our timeline and costs. Some local officials even made the situation more challenging,” Benander stated. “Our lenders are now working with us to identify a buyer and seek the best resolution for Northeast Biodiesel, which remains committed to producing low-carbon, biodegradable fuel for diesel engines and oil heating systems in Greenfield.”
