DAYTON, Texas -- Agribiofuels LLC has signed agreements with ConAgra Trade Group to provide feedstock oils for the Agribiofuels biodiesel plant currently under construction in Dayton, Texas.

In addition, ConAgra Trade Group will provide biodiesel and glycerin marketing and outbound logistics services for the facility.

Agribiofuels, LLC was formed in 2005 for the purposes of producing biodiesel fuel from vegetable and animal fats and oils. The company has access to proprietary microwave technology which will enable it to use lower cost and quality feedstock to produce its biodiesel.

Agribiofuels selected Dayton as the plant site based on its location in the heart of the southeast Texas agricultural belt and its easy access by rail and road to Houston and the rest of the Gulf region. Agribiofuels began biodiesel production at its Dayton technology center in November 2006 and plans to complete its 42 million gallon per year facility in late 2007.

The plant will be a state-of-the-art plant designed by a world-class engineering company with extensive experience in biodiesel design and production and will be capable of utilizing vegetable oils and recycled fats and oils for production. Phase 1 of the plant is currently in operation and producing at a 6M gallon per year rate. This is scheduled to increase to 12M gallons per year by the 2nd quarter 2007.

As the commodity trading arm of packaged foods company ConAgra Foods Inc., ConAgra Trade Group leverages its extensive agricultural and energy commodity expertise to provide procurement, logistics and marketing services to the renewable fuels industry.

Imperial Petroleum Recovery Corporation has a management agreement with and an equity stake in Agribiofuels, LLC. Imperial Petroleum Recovery Corporation also has licensed its patented Microwave Separation technology to Agribiofuels LLC for feedstock treatment and water separation after the water wash phase of biodiesel production.

SOURCE: Agribiofuels LLC via PrimeNewswire.