St. Joseph’s third biodiesel plant broke ground Wednesday morning on south Stockyards Expressway.

It was only ceremonial; ground preparation work is already done at Terra Bioenergy. Concrete pads are poured for storage tanks and much of the equipment for the refinery is built, waiting to be installed.

The $25 million plant is scheduled to be complete in February. It will employ 25 to 30 people and produce 15 million gallons per year, said David Holcombe, chief executive officer of Terra.

Terra’s plant will primarily use animal fat to produce biodiesel, which can be used in virtually all diesel engines. The animal fat gives Terra an edge over most other operations, which use soybean or vegetable oil, Mr. Holcombe said.

“It does not affect the feed market like ethanol,” he said.

Biofuels have increased the demand for grain, which has been criticized for increasing food prices. Some people have called for repealing laws requiring biofuels to be used in fuel. Mr. Holcombe said those issues are a concern, but the nearly 100 investors who own Terra still are optimistic about the industry’s future.

“We feel pretty confident we’ve made a wise choice,” he said.

Holt County farmer Byron Fink has been actively involved in renewable fuels for 20 years and is one of Terra’s investors. Biodiesel is a good investment for farmers not only because it uses agriculture products, but because they are also heavy users of fuel, he said.

“When you’re looking at $4 or $5 diesel, it’d be great to be a seller of that,” Mr. Fink said.

Terra officials said they don’t understand why renewable fuels have caused such negative feelings among some people. “By and large, it is a good product made from something very green,” Mr. Holcombe said.

St. Joseph has two operating biodiesel plants and an ethanol facility. Rep. Martin Rucker said the city is well on its way to being the state’s alternative fuel capital.

“The renewable fuels industry is a big part of our future,” he said. “Whether we want to get on board or not, it’s going to happen.”

Business editor Susan Mires can be reached

at susanm@npgco.com.