AGP co-op buying idle biodiesel plant in Iowa

In the US, farmer-owned cooperative Ag Processing (AGP) is to acquire a defunct biodiesel plant located in Algona, Iowa.

According to the company's CEO Marty Reagan, the plant is scheduled to resume operations by 1 September 2011 and will create 31 jobs. He said AGP agreed to buy the facility because it will support its soyabean processing and biodiesel operations.

Terms of deal were not disclosed.

East Fork Biodiesel previously owned the plant. It was producing 60 million gallons of biodiesel a year before it became idle.

AGP is based in Omaha in the state of Nebraska.