With help from the Voinovich School’s Appalachian Regional Entrepreneurship Group (AREG), Logan, Ohio firm Chieftain Biofuels received approximately $1.5 million in grants and loans to start a unique soy based, biodiesel processing plant in Hocking County. The Voinovich School helped develop a business plan and financial projections necessary to determine feasibility, which were instrumental in securing the funding for the company.
Chieftain Biofuels is unique in that it will have two streams of revenue, distinguishing it from current competitors. Raw soybeans will be crushed in the facility to produce the oil that will find its way to the biodiesel processor to be made into high grade fuel. The byproduct left over after the crushing process, mush will be dried and sold to local farmers as high protein meal for livestock.
Biodiesel fuels are four times more biodegradable and reduce pollutants compared to conventional diesel. Chieftain produces its fuel from soybeans, though it can also be made from other renewable energy sources like natural vegetable oils and animal fats. Biodiesel also helps to extend the lives of the engines it powers.
Soybeans were chosen as feedstock because it is abundant in the area; Hocking County is adjacent to Pickaway County. Pickaway County is the 5th largest producer of the legume. The plant yields a high output. Chieftain will process 43 tons of soybeans per day, 33 bushels are equivalent to one ton, and the state average is 45 bushels per acre.
Providing an alternative fuel source, and utilizing the whole legume are some of the positive impacts of the processing plant. It will also increase economic flow in the region as the soybeans for processing will primarily be bought from local suppliers and it is predicted to create 20 jobs over a three year period.
Jon Ginther, a student in the Integrated Master of Business Administration (MBA) and Master of Sports Administration (MSA) programs developed the business plan and finanacial projections that helped Chieftain Biofuels acquire funding.
Ginther's work at the Voinovich School has helped him to apply his skills beyond the classroom. This project gave him the chance to apply what he learned to a real business and see that his work has helped his client achieve their goals.
“It kind of shows you a more well-rounded view of what you’re learning in the classroom,” he said. “I think that my experience at the Voinovich School gives me confidence in what I have learned, as well as helped me to understand more substantially how a business operates, whether it be a small company in Appalachia or a major company in a metropolis.”