The proposed ethanol plant in Hinton edged closer to construction in the past week with the approval of its air permit and millions of dollars in tax credits.
On Tuesday the plant secured its Iowa Department of Natural Resources air permit. Floyd Valley Ethanol, LLC's John Baardson, Floyd Valley Ethanol's president and CEO, applauded the news and said this is a big step towards construction.
"Our company has been received warmly by the state and local government and the people of northwest Iowa. We look forward to becoming part of the community and making a positive economic impact," Baardson said.
Developers of the $150 million plant were also awarded a nearly $9 million boost last Thursday from the state.
The Iowa Department of Economic Development (IDED) pledged $8.9 million in tax credits to Floyd Valley Ethanol, the developer of the ethanol plant, as part of the High Quality Job Creation Program in Iowa for creating skilled jobs in Plymouth County.
The award was approved by IDED director Mike Tramontina.
Construction on the 115-million gallon-a-year ethanol plant is expected to begin in September with a completion date slated for the third quarter 2008.
Ed Cable, the local project manager, said they are still finalizing equity and debt for the plant.
"As soon as that's completed, we'll begin construction," Cable said.
At capacity, the plant will also yield 360,000 tons of high grade distiller's grain annually for animal feed.
Roger Price, general manager of Farmers Coop Company which is partnering with Floyd Valley ethanol in the development of the project, said demand for ethanol continues to increase.
"Aggregate demand for ethanol, is increasing as called for by President Bush and Congress," Price said. "At the same time, we believe that corn prices relevant to ethanol will continue to exhibit major volatility."
"This is precisely the environment for which Floyd Valley Ethanol developed its business model.
"Corn availability will be a big advantage to Floyd Valley Ethanol with our strategic partnership with Floyd Valley Grain, LLC," Baardson said.
Floyd Valley Grain will deliver 38.6 million bushels of corn to the plant annually through its facilities located immediately adjacent to the ethanol plant.
The plant would sit just east of Highway 75 near its intersection with county road C-60, close to the co-op and rail system.
"Also unique to the 90-acre plant site, is our location directly next to the Burlington Northern, Canadian National, and Union Pacific (via trackage rights) railroads," Price added.
With access to the three railroads, Floyd Valley Ethanol will market ethanol into all major markets throughout the United States. The site currently has 100 car unit train capabilities for corn and a railroad switch with siding dedicated to 110 car unit train outbound ethanol will be installed.
Plant construction will create more than 400 skilled and non-skilled jobs. When completed, Floyd Valley Ethanol will employ 45 full-time people.
Floyd Valley Ethanol is a Baard Energy, LLC company. Baard, based in Vancouver, Wash., and its affiliates have developed over 1,200 MW of electrical generation facilities in the last 20 years and are currently developing Coal to Liquids projects.
Source : www.lemarssentinel.com
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