New oil production plant will help the economy and the environment

A project to build a state-of-the-art plant that can produce high-quality vegetable oil for various uses, including bio-fuels, has secured funding from the European Regional Development Fund (ERDF). The firm, Bio-Ölwerk Magdeburg GmbH, already has two plants which produce oils and bio-fuels. The investment for “Plant III” will expand production, allow the firm to diversify its sales portfolio and secure jobs in an underdeveloped region.

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The third plant at Bio-Ölwerk’s Rothensee site will process rapeseed in order to produce vegetable oil and “rape groat”, a byproduct that can be used as an animal feed. The new facility will be able to produce 280 000 tonnes per year of vegetable oil from 560 000 tonnes of rapeseed.

This new infrastructure will allow the firm to turn the pressed oil into vegetable oil for cooking, use as a source material for bio-diesel or to develop as a pure vegetable fuel-oil. Rapeseed cakes are made from what is left of the pressing process and are in great demand as animal feed. When it comes to the production of bio-diesel, the plant will make Bio-Ölwerk less reliant on vegetable oil suppliers.

The project promises to be a shot in the arm for the local economy. As well as providing 30 permanent jobs and four trainee positions, it is estimated that the investment will save a further 746 full-time equivalent posts. More broadly, the plant will boost the region’s industrial production at a site that is well connected to Germany’s waterways and road network. It will also help to meet a growing demand for fuels made from renewable resources and indirectly contribute to reducing Germany’s carbon emissions.

A contribution from the ERDF was deemed necessary because of a lack of national or private funds for the scheme.

A modern, efficient facility

Work to complete Plant III will include the following:

  • Erection of six seed silos, each with a capacity of 5 600 m3;
  • Erection of three groat silos, each with a capacity of 4 600 m3;
  • Construction of a three-lane hopper for receiving seed and loading groat;
  • Construction of a production hall to house the plant’s pre-pressing, water de-gumming, bleaching and deodorising facilities, including integrated workshops and spare-parts storage; and
  • Construction of a production hall for the extraction process, assembly of four solvent tanks and a cooling tower.

In addition, purification and filter systems will be installed to deal with waste gas. A hall will be built to receive seed, and a processing plant will be completed with a switch room, office and refining station.

Much of the rapeseed required by the new plant can be grown in the Börde, an agricultural area near Magdeburg. Option agreements for supply of the raw material have already been concluded with wholesalers and farmers.


Total and EU funding

The project “Bio-Ölwerk Magdeburg GmbH” has a total eligible budget of EUR 9 410 600, with the EU’s European Regional Development Fund contributing EUR 7 015 569 for the 2007 to 2013 programming period.


Draft date

23/01/2013