Two companies, Great Plains Oil & Exploration and Sustainable Oils, have been working in recent years to develop a market for camelina for use as a replacement for jet fuel or diesel.
The crop grows well in Montana's arid soils, but farmers have been reluctant to switch over from wheat and other traditional crops.
Now the Food and Drug Administration has approved the use of meal from the plant's crushed seeds for use in cattle feed. That could make biofuels production more profitable, by creating a potential market for one of the crop's byproducts.
Great Plains Oil and Exploration has also leased a Montola plant in Culbertson for seed storage after its owners failed to pay farmers for crops grown under contract.
The plant was owned by Sustainable Systems, a Missoula renewable-fuels company that contracted for oilseed in 2008 at premium prices. The company didn't obtain bank loans to pay for seed and remain operational, according to the annual report of Sustainable Systems' parent company, Greenshift Corp.
Sustainable later forfeited its surety bond and agreed to let state agriculture officials liquidate company assets to satisfy debts to growers. Through the process, growers received nearly $1.2 million in payment.
"The Culbertson facility immediately provides Great Plains with storage and handling capabilities that are much needed after yet another record Camelina crop," said Sam Huttenbauer III, Great Plains CEO. "We remain committed to operating a Montana crushing facility, and this agreement allows us to continue to explore our options at Culbertson."
Equipment modifications are needed at the Culbertson plant before it can efficiently extract seed oil while still complying with federal environmental law. The facility is now owned by Carbonics Capital Corp.
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