BANGOR – Michigan’s first biodiesel plant won’t be built by a big energy company, but by a group of farmers pooling their resources to launch a 10 million-gallon plant later this summer.

Michigan BioDiesel LLC, a partnership of independent investors, is building the pioneer plant, which will produce biodiesel fuel from soybean oil and create 25 new jobs for a small, economically depressed city in Southwest Michigan.

Most of the 72 investors are farmers who know a thing or two about soybeans and other crops and are intrigued with the revenue potential for selling an alternative energy fuel to benefit Michigan?s agricultural community.

“We like the opportunity to use U.S. produced, renewable energy resources that have the potential to improve the quality of our environment,” said John Oakley, Michigan BioDiesel?s chair and owner of Seven Oaks Seed Co. in Dimondale. “This is a committed group of entrepreneurs with strong farm values and heritage who are thinking ahead and thinking green. Biodiesel is the fuel of the future and farmers can lead the way toward more alternative energy use in Michigan.”

Several sites in Michigan and Indiana were considered before land was purchased in the city of Bangor between Kalamazoo and South Haven in Van Buren County.

“Bangor is thrilled to have been selected for this plant,” said City Manager Larry Nielsen. “It’s a $3.5 million investment. For a city our size (2,000 population) this is a huge development and 22 new jobs are significant.”

The plant will use a large batch process, which means soybean, sunflower and corn oil as well as animal fats and recycled restaurant greases can be used to make the biofuel.

Biodiesel burns cleaner than petroleum and is the only fuel to meet the health effects testing requirements of the 1990 Clean Air Act Amendments. A B20 biodiesel, which is 20 percent biodiesel and 80 percent petroleum-based diesel, allows farmers and drivers of diesel-powered vehicles to comply with the 2006 Environmental Protection Agency mandate that established lower sulfur requirements in diesel fuel.

The making of biofuels is an environmentally friendly process. MBD will use a “closed” system with virtually no odor release. If there are odors, they will resemble the smell of salad oil or french fries. The blending with diesel will take place at the distribution level, not on site in Bangor.