Warden biodiesel plant starts securing crops

by Matthew Weaver<br>Herald Staff Writer
| September 29, 2006 9:00 PM

Company to discuss contracts with farmers in 2007

WARDEN — Early next year, area growers will probably start hearing a lot about winter canola.

That's when the folks behind Washington Biodiesel, which announced plans to locate a oilseed-crushing facility in Warden in March, plan to start visiting with farmers to discuss contracting acres to grow the crop for fall of 2007, said President Daniel Malarkey.

"I think the first of the year is really when we're going to want to be out, visiting about terms in which we could get some acres under cultivation here in the state," he said.

Cofounder Jeff Stephens is a participant of the Washington Chapter of the American Society of Farm Managers and Rural Appraisers fall meeting Thursday at the Shilo Inn, while Malarkey participates in a science-technology roundtable discussion Oct. 27 in Spokane.

Event coordinator Dick Pulis said a lot of people are interested in biodiesel and alternative fuel sources.

"It's important to us because of the income approach to appraisal work," he said. "It's very important to the appraisers and to the farm managers very interested in raising canola or other seed crops to bolster the income."

Washington Biodiesel is just one participant in the full program, he noted.

"I think it will be tremendous," Pulis said of the company's presence in Warden. "It gives us another alternative crop, not only for the irrigated farmers, but for the dryland farmers. I think the dryland farmers may even benefit more than the irrigated farmers."

"I think there certainly is interest," Malarkey said. He points to meetings and forums where farmers demonstrated interest in the crop. He foresees questions about the price of winter canola and the crop's ability to compete, but said it competes very well with other potential crops in terms of revenue per acre.

Malarkey said the company prefers growers be in an area in close proximity to the facility.

"It's going to take a while, a few years I think, to supply the plant entirely locally," he said. "Farmers need to gain confidence in the crop and see the prices hold in there for a while before they make the switch over."

Malarkey said the facility is progressing very well, and noted the company signed a lease with the Port of Warden, which he termed a "major milestone."

The port purchased land from the state Department of Natural Resources last week, Port of Warden Manager Mike Conley said. Malarkey said the port is working with the Grant County Public Utilities District to build a substation for the plant.

"I can't say enough about the great help we've gotten from the economic development leaders in the community," Malarkey enthused. "The reception we've gotten has been quite positive. People are really trying to roll up their sleeves, and figure out how to bring the project in on schedule."

Malarkey said ground breaking should take place in March 2007.

"We're moving along on a good schedule," he said. "The key thing on the critical path for us right now, is working with the PUD to bring in the power to the site. That's really the key factor in terms of our opening date."

The company is working with the PUD schedule and ability to bring in transformers, to open in the first quarter of 2008, Malarkey said.