FULTONVILLE — A biodiesel production proposal rejected in the city of Amsterdam would be established instead at the former White Mop Wringer facility in Glen under plans headed to a public hearing next month.

Geo-Environmental Management Solutions principal Jeremy Silverman on Monday said an arrangement with School House Companies will eliminate the need to construct a building estimated to cost just under $1 million.

There is available space in the facility at 182 Riverside Drive where Perrone Leather and Midwest Canvas currently operate, Silverman said.

“There’s more than enough room,” said Silverman, who, with partner Fred Krone, wants to establish the fuel-making operation under the name New York Biofuel LLC.

Following concerns expressed by 4th Ward Alderman William Wills, the Amsterdam Planning Commission in June rejected a proposal to establish production in the Olbrych Dairy Building on Bell Street.

That proposal followed an initial plan to build a facility in Montgomery County’s Glen Canal View Business Park, but estimates nearing $1 million for construction were too expensive, according to documents submitted to the Glen Town Planning Board.

The Glen Planning Board approved a use variance for the project and the county Planning Board is scheduled to review the plans later this week.

According to planning documents, the project, estimated to cost $800,000, will require two 12,000-gallon biodiesel storage tanks, a 10,000-gallon methanol tank, a 4,000 gallon lye premix tank and other tanks for chemical mixing, waste vegetable oil and glycerol storage.

The manufacturing and processing area would be surrounded with fire walls and include a foam fire suppression system, and methanol tanks would be situated in ventilated and temperature-controlled enclosures with vapor-monitoring controls, according to the plans.

The methanol tanks also would be equipped with nitrogen vapor suppression systems or “nitrogen blankets.”

Riverside Drive currently hosts a major truck stop alongside state Thruway Exit 28, and the potential exists to market the biofuel to truckers, Silverman said.

“We think it’s a perfect location … it’s almost like the trucking capital in Montgomery County,” Silverman said.

A timetable for production will not be determined until final approvals are received, Silverman said.

“We’re not ordering the equipment until we know we can put it somewhere,” Silverman said.

Besides local planning approval, the project requires a state Department of Environmental Conservation bulk storage permit and an air discharge permit from the U.S. Environmental Protection Agency, according to proposal documents.

County Economic Development Director Ken Rose said Monday the project would be eligible for assistance under the county’s revolving loan program.

The Glen Planning Board will hold a public hearing on the proposal at 7:30 p.m. Sept. 22 at the Glen Town Hall, 7 Erie St., Fultonville. Project documents are available there for public review.

Written comments can be sent to John Thomas, Glen Planning Board, 7 Erie Street, Fultonville, NY 12072.