New Heaven Chemicals biofuel catalyst plant to open in Iowa

New Heaven Chemicals, a US-based subsidiary of the TSS Group, is preparing to open its chemical production facility in Manly, Iowa.

After 17 months of construction, New Heaven Chemicals (NHC) plans to begin production of sodium methylate, a biofuel catalyst, by February 2016.

The Manly plant is NHC’s first plant in the US, and it will supplement the company’s current plant in Dammam, Saudi Arabia.

TSS Group has been supplying sodium methylate to biofuel producers around the world, but now it seeks to bring production closer to its customers.

According to Prasad Devineni, director of NHC, the company had decided to stop bringing sodium methylate in from outside and start producing it on the spot.

‘Iowa being one of the biggest biodiesel producing states, it made perfect sense to look at a plant right here. Within 100 miles we have about 15 biodiesel companies and we can sell out completely, 100% production, within 100 miles,’ Devineni says.

TSS was particularly interested in Manly as sodium methylate’s main component, methanol, is already stored at the Manly Terminal, an ethanol and multi-product logistics facility.

The chemical is in such high demand, that TSS decided to revamp the plant during construction to double its production capacity.

While initially planned to produce an annual 12,000 tonnes of sodium methylate, the facility is now expected to be capable of an output of 24,000 tonnes a year.

The expansion delayed the facility’s opening, which had originally been scheduled for the end of 2014.

An estimated $15 million (€13.6m) has been invested in the plant, and NHC expect it to generate a gross revenue of $15-$20 million.

NHC has also received outside investment, with the Iowa Economic Development Authority giving the company a $128,000 loan and $402,000 in tax incentives and Worth County Board of Supervisors handing out a $30,000 cash incentive and a five-year tax increment financing rebate of 100%.