North Dakota soy processing, biodiesel plant moving forward

By Ron Kotrba | August 08, 2017

A letter of intent (LOI) was signed early this month between North Dakota Soybean Processors LLC and the Jamestown/Stutsman Development Corp. to advance development of a $287 million soybean crush and biodiesel refinery in Spiritwood, North Dakota. NDSP has selected a site on approximately 80 acres in the Spiritwood Energy Industrial Park. According to Minnesota Soybean Processors (MnSP)—the majority investor in and managing member of the NDSP project—the LOI facilitates transfer of land from JSDC to the Spiritwood Energy Park Association LLC and infrastructure improvements such as additional rail capacity.

NDSP has completed a feasibility study and a preliminary frontend engineering and design study for the project that is expected to crush 125,000 bushels of soybeans per day to produce soybean meal, RBD soybean oil and 30 MMgy of biodiesel.

NDSP will be holding a series of investor and informational meetings as it raises money to complete the funding for the project. MnSP will be making a $60 million investment in NDSP by subscribing to purchase 6,000 units in the NDSP offering, and will continue to be the majority controlling member following the capital raise. In addition, as the managing member of NDSP, MnSP will be responsible for the day-to-day operations of the facility. NDSP is seeking additional investors and recently secured a $500,000 investment from North Dakota Farmers Union.

“Having a commodity processing facility like this in North Dakota is essential to helping farmers and ranchers,” said NDFU President Mark Watne. “We’ll have another avenue to market soybeans in state, and value is being added to that crop. Anytime we add value to a commodity, we enhance farm income.”

MnSP General Manager Scott Austin said the facility will have a major impact on value-added agriculture in the state. “It is great to have an organization like NDFU, which represents producers from all over the state, be a part of this,” he said. “Throughout this process, NDFU has provided great support to NDSP. We are grateful and look forward to our partnership with them for years to come.”

Watne said he hopes the project paves the way for more processing facilities in the state, especially farmer-owned projects.

 

 
 
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