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DENVER—A Wheat Ridge company will receive $225,000 in federal funds to develop a process to produce biodiesel from waste grease.

The contract awarded to TDA Research is one of eight granted nationwide in the second phase of the U.S. Environmental Protection Agency’s Small Business Innovation Research program.

EPA officials said Monday that TDA determined during the program’s first phase that it can produce biodiesel from waste grease at a cost that’s competitive with conventional diesel.

The company will operate a laboratory-scale version of the process in the second phase and come up with ways to economically produce large quantities of the fuel.

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