OMAHA -- Tenaska Energy Inc. has formed a new biofuels company, Tenaska BioFuels, LLC, to provide marketing, physical delivery and financial services to the ethanol and biodiesel industries.

Dave Neubauer will head the company as vice president and general manager. He comes to Tenaska after serving as president of Chalkstone Consulting LLC of Omaha. Neubauer founded Chalkstone in 2003 to focus on energy-related acquisitions, ethanol development and crude oil pipeline development.

The new company, to be headquartered in Omaha, is expected to go into operation during the third quarter of 2006.

Neubauer will report to Larry Pearson, president and CEO of Tenaska's Operations Group.

"Ethanol and biodiesel are quickly gaining acceptance nationwide as clean-burning, renewable and economical fuels," said Neubauer. They "will become increasingly important as conventional petroleum supplies become more costly and environmental concerns increase."

Pearson said Tenaska BioFuels will build on Tenaska's reputation for providing efficient and cost-effective services to energy partners in the Midwest and nationwide to develop new and productive relationships with alternative fuels producers, marketers, blenders and retailers.

"We are excited about the opportunity to become part of the growing ethanol and biodiesel industries, and we hope to be a significant contributor to their future success," he said.

Tenaska is an energy company based in Omaha that develops, constructs, owns, and operates non-utility generation and cogeneration plants. The privately-held company also markets natural gas and electric power and provides risk management services.

SOURCE: Tenaska via PR Newswire.