Denton leaders on Tuesday severed ties with the company that produces biodiesel fuel at the city landfill.

City Council members voted to terminate the city’s agreement with Biodiesel Industries and sue the company over its performance. The vote came without discussion following a closed-door meeting, and officials would not discuss their reasoning.

Mayor Perry McNeill referred questions to City Attorney Ed Snyder, who said he would explain the case once a lawsuit is filed. The city plans to file a suit, likely in federal court, within days, Snyder said.

Officials with Biodiesel Industries could not be reached for comment.

The move signals a sour end to a much-hyped partnership.

The facility opened to great fanfare in 2005 as the nation’s first fully renewable biodiesel manufacturing plant. Actress Daryl Hannah attended the grand opening and praised city and company officials for “turning garbage to gold.” Author-musician Kinky Friedman visited during his 2006 run for governor. And city officials often tout the facility as proof of their concern for the environment.

The council contracted with California-based Biodiesel Industries and another company in March 2004 to build the 10,000-square-foot plant at the landfill on South Mayhill Road.

The $3 million plant converts deep-frying oils into biodiesel.

The city agreed to buy 300,000 gallons of biodiesel each year for five years to fuel its garbage trucks, service trucks, buses and other equipment that previously used diesel fuel. Offi­cials said the biodiesel would help reduce the city’s dependence on petroleum fuel and cut down on toxic vehicle emissions.

The city also paid $650,000 to help equip the plant, which is powered by methane gas extracted from the city landfill. At the time, officials said the city would share in profit from the sale of excess landfill gas and would be reimbursed for plant equipment.

LOWELL BROWN can be reached at 940-566-6882. His e-mail address is lmbrown@dentonrc.com .