MOSES LAKE - The Pasco-based GEN-X Energy Group could open a new facility during the second quarter of this year in Moses Lake and create about 10 new jobs.

The biodiesel production facility would replace the company's building that was destroyed on July 4, 2009, on Port of Walla Walla property, said John Forrest, the company's vice president of product development.

The fire started in a portable toilet and spread to the roof of the biodiesel production facility.

The building was declared a total loss.

The replacement Moses Lake facility is located on Road N NE and the site of a former ethanol plant called Liquefaction.

Forrest says they are using the existing facility after completing some demolition and clean-up work.

"We're excited about coming up here," Forrest said.

Once GEN-X gets the plant running, the facility produces biodiesel for transportation fuel, which is blended with petroleum diesel.

The plant is designed to produce 1.5 million gallons of biodiesel annually.

"We're looking at expanding the plant, but want to produce 1.5 million gallons first," Forrest said.

They like the features Grant County has to offer.

"We think it will be a very cost-effective facility," he said. "We thought about partnering with someone down here in the Tri-Cities, but by mutual agreement, decided not to build here."

The company is a multi-feed stock provider, said Ray Benavides, the company's vice president of business development and co-founder.

They produce fuels from oils and can support Washington state farmers growing Canola and camolina. The farmers work with crushing facilities in our state.

In the past, the company worked with crushing businesses Touchet Seed & Energy in Touchet and Natural Selection Farms in Sunnyside.

There have been no formal discussions with Inland Empire Oil and Seed in Odessa, but there is potential for GEN-X to work with them too, Benavides said.

It's his understanding Inland Empire  Oil and Seed is beginning to crush camolina, he said.

GEN-X is currently obtaining air quality approval for its project from the state Department of Ecology (DOE)

Copies of the company's application are available for public review at Moses Lake City Hall, located at 321 S. Balsam St. and DOE's Spokane office at 4601 N. Monroe St., said Robert Koster, a DOE environmental engineer.

The 30 day public comment period started Feb. 25.

The public can submit comments by writing Koster at his Spokane office.

Koster said the company initially applied for a moderate sized production plant, designed to produce 15 million gallons per year.