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Blue Sky Biodiesel building plant in Wyoming.

CHEYENNE - A company is remodeling a building here so it can produce 4 million to 8 million gallons of biodiesel a year.

Kurt Arnusch and his partners in Blue Sky Biodiesel will use the Cheyenne plant to produce fuel made from soybean oil they will truck in from eastern Nebraska.

"With the shortages being experienced because of ultra low-sulfur diesel requirements in the 2005 energy bill and EPA requirements, diesel is a hot property," Arnusch said. "I would rather pay a farmer here to grow a crop rather than see that land idle."

Arnusch, who used to farm with his father and brother near Torrington, already has a smaller biodiesel plant operating in Gering, Neb. The Cheyenne plant is expected to employ about 12 workers.

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