Work has started on the second of five ethanol plants being planned by Denver-based ethanol plant developer
BioFuel Energy LLC. Initial dirt work is underway on Buffalo Lake Energy LLC, a 110 MMgy ethanol plant near Fairmont, Minn.
The Buffalo Lake plant will be collocated near a Cargill-owned grain elevator. The ethanol plant will consume 41 million bushels of corn per year from the facility. Cargill will also act as the ethanol plant's distillers grains and ethanol marketer.
The agreement is similar to BioFuel Energy's first ethanol project, according to BioFuel Energy COO and cofounder Dan Simon. BioFuel Energy's first plant has been under construction since May, but will hold its official groundbreaking Nov. 16. Pioneer Trail Energy is a 115 MMgy corn-fed plant in Wood River, Neb. Simon said concrete is being poured at the site.
The Industrial Company (TIC) is acting as general contractor on both projects. Delta-T Corp. is providing process technology. Simon said the arrangement with TIC, Delta-T and Cargill will remain for BioFuel Energy's next three projects, which are expected to be built near Cargill grain-handling facilities. "We are in the process with the other three," Simon said. "We've purchased land and begun permitting."
Simon said 40 percent of the equipment has been procured for the Buffalo Lake plant. Initial site work, including implementing natural gas and water lines, is ongoing. The Union Pacific Railroad serves the site.
Buffalo Lake Energy will produce approximately 375,000 tons of distillers dried grains per year. The initial corn grind is expected in January 2008, Simon said. It typically takes an ethanol plant a week or two to begin producing ethanol following initial grind.
BioFuel Energy LLC is formerly BioFuel Solutions LLC.
Buffalo Lake Energy LLC
Location: Fairmont, Minnesota
General contractor: The Industrial Company
Process technology: Delta-T Corp.
Capacity: 110 MMgy
Feedstock: corn
Ethanol marketer: Cargill Inc.
Distillers grains marketer: Cargill Inc.
Carbon dioxide marketer: undeclared
Broke ground: September 2006
Target start-up date: January 2008
Pioneer Trail Energy
Location: Wood River, Nebraska
Design/builder: The Industrial Company
Process technology: Delta-T Corp.
Capacity: 115 MMgy
Feedstock: corn
Ethanol marketer: Cargill Inc.
Distillers grains marketer: Cargill Inc.
Carbon dioxide marketer: N/A
Broke ground: May 2006
Target start-up date: November 2007
Dave Nilles is Online Editor for
Ethanol Producer Magazine. Reach him at dnilles@bbibiofuels.com or (701) 373-0636.
Posted: 12:49 p.m. CDT Monday, October 23, 2006