New Hampton Ethanol Plant Proposal Moves Forward
A proposed $160 million ethanol plan east of the city received the go-ahead from federal officials to start raising money.
The U.S Securities and Exchange on Thursday approved Homeland Ethanol Solutions for limited liability corporation status. The action allows the company to start selling shares for an ethanol plant capable of producing 100 million gallons annually.
Pat Boyle, Homeland’s vice president of project development, called the announcement from the SEC a big step forward. He added officials expect to begin an equity drive Dec. 9.
Construction is scheduled to begin next summer and could take up to 16 months to complete, Boyle said.
Fagen Inc., a leading ethanol plant contractor from Granite, Minn., has signed a letter of intent to construct the plant.
Once finished, the plant will employ up to 47 people and consume nearly 37 million bushels of corn annually. It also will produce 333,000 tons of dried distillers grain, which is used mainly as cattle feed.
The plant will use natural gas for power, but Boyle said Homeland also will investigate alternative methods for firing the operation.
This is the first ethanol plant in Chickasaw County. Homeland officials considered placing the project in Winneshiek County but chose Chickasaw County, because the selected site needed less preparation. Chickasaw County also has offered a 20-year tax incentive for the plant.
Iowa has 25 ethanol plants in operation, including ones in Iowa Falls, Wellsburg and Fairbank. Eleven plants are under construction and several more are in various planning stages.
Contact Josh Nelson at (319) 291-1565 or josh.nelson@wcfcourier.com.
—–
Copyright (c) 2006, Waterloo-Cedar Falls Courier, Iowa
Distributed by McClatchy-Tribune Business News.
For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.
Source: Waterloo Courier
