A biodiesel company is reopening in Keokuk under the auspices of Enervation Advisors LLC, an Axis Group Company, and in partnership with the former Tri-City Energy's original principal owner John Rothgeb.
Tri-City Energy, 410 Johnson St., closed about three years ago when its principal feedstock, soybeans, shot up in price and devastated the small, startup company's balance sheet. Investors lost their money and the foreclosure sale seemed to put the final punctuation mark on the business.
The Keokuk plant's biodiesel and glycerin processes – glycerin will go into production first – will use grease, oil and fat obtained from area rendering plants, as well as a wide variety of available feedstocks.
Tantillo is working with consultants Peter Behrle of Renewable BioSystems in Fairfield, N.J., and Tony Prehm, president of Virtuoso Biofuel, Council Bluffs, to refit the Keokuk plant, hire workers and provide expert advice.
As Enervation's first attempt at producing biofuel, Tantillo and his fellow investors are taking it slow to get it right, but intend to pick up a few more shuttered plants and return them to production, Tantillo said.
Tantillo said he heard about Tri-City Energy through a friend. He flew to Keokuk, saw the problems and benefits of the business and got to know Rothgeb. The men talked and agreed the startup would be hard going in "a tough marketplace," but decided to go forward with the project.
Since that time, Tantillo and his group have entered bids on several large biodiesel plants that have gone bankrupt and closed.
Tantillo and his investors also are evaluating the startup of an ethanol plant in Keokuk, he added.
Rothgeb is feeling optimistic about the future.
