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American BioFuels is relocating its production operations to Bakersfield, Calif., as part of a joint venture with Hondo Chemical of Bakersfield. American BioFuels, based in San Diego, will move from a building in Adelanto which processed 2.5 million gallons of biofuel annually to Hondo's Bakersfield site, which can process 50 million gallons annually. Initial production is aimed to reach 15 million gallons per year as market demand increases. Production at the Hondo facilities is slated to begin in February 2003. American BioFuels will occupy an existing 12,000-sf building with loading docks and a railroad spur as its part of the joint venture. The facility houses fully equipped chemical labs, biofuel storage tanks, office space, utilities, and excess heat capabilities.