Minnesota ethanol production edges north
October 26, 2006
BY Dave Nilles
Minnesota's ethanol production continues to edge north. The state's farthest north ethanol plant broke ground Oct. 27 and is undergoing construction near Fergus Falls. Otter Tail Ag Enterprises LLC is building a 57.5 MMgy ethanol plant on a 109-acre site along Interstate 94 in west-central Minnesota.
Otter Tail Ag CEO Kelly Longtin said initial dirt work began in late October. Concrete is now being poured. Harris Mechanical is the project's general contractor and will use a process design provided by Delta-T. Corp.
The project, which is permitted for 65 MMgy of production, is located on the Otter Tail Valley Railroad, which is a division of RailAmerica Inc. Longtin said a short line will ship ethanol and distillers grains west until it connects to a Burlington Northern Santa Fe main line near Moorhead, Minn. The site is also located above a 6 million gallon aquifer, according to Longtin.
Longtin said private placement investment raised more than $40 million from Minnesota investors for the plant. "It is the single largest private investment ever made in Otter Tail County," according to Harold Stanislawski, executive director of the Fergus Falls Economic Development Commission.
The Otter Tail project was aided by Minnesota's Job Opportunity Building Zone (JOBZ) initiative, which is the state's rural economic development program. The program provides tax relief to companies that start-up or expand in Minnesota. Longtin said equipment purchases during construction are exempt from state sales tax.
CHS Inc. is slated to procure corn for the ethanol project. Longtin said he expects most of the corn to come from southwest of the plant, although he added that the Minnesota corn-growing region is expanding farther north. The plant is likely to see competition from a 100 MMgy plant being developed by U.S. BioEnergy near Hankinson, N.D. A ceremonial groundbreaking was held in August for U.S. Bio Hankinson, which is 60 miles southwest of Fergus Falls along the North Dakota and South Dakota border. The project has yet to start construction. "There will be some competition as you go west," Longtin told EthanolProducer.com. "It's inevitable."
Until Otter Tail Ag starts up in March 2008, Central Minnesota Ethanol Co-op. remains the state's farthest north operational ethanol plant. Minnesota has 16 operating ethanol plants with more than 510 MMgy of capacity. Three more plants are under construction with more than 215 MMgy of capacity.
Otter Tail Ag Enterprises LLC
Location: Fergus Falls, Minnesota
General contractor: Harris Mechanical
Process technology: Delta-T Corp.
Capacity: 57.5 MMgy
Feedstock: corn
Ethanol marketer: Renewable Products Marketing Group
Distillers grains marketer: Commodity Specialists Co.
Carbon dioxide marketer: N/A
Broke ground: October 2006
Target start-up date: March 2008
Dave Nilles is Online Editor for Ethanol Producer Magazine. Reach him at dnilles@bbibiofuels.com or (701) 373-0636.
Posted: 1:25 p.m. CST Wednesday, November 15, 2006
Otter Tail Ag CEO Kelly Longtin said initial dirt work began in late October. Concrete is now being poured. Harris Mechanical is the project's general contractor and will use a process design provided by Delta-T. Corp.
The project, which is permitted for 65 MMgy of production, is located on the Otter Tail Valley Railroad, which is a division of RailAmerica Inc. Longtin said a short line will ship ethanol and distillers grains west until it connects to a Burlington Northern Santa Fe main line near Moorhead, Minn. The site is also located above a 6 million gallon aquifer, according to Longtin.
Longtin said private placement investment raised more than $40 million from Minnesota investors for the plant. "It is the single largest private investment ever made in Otter Tail County," according to Harold Stanislawski, executive director of the Fergus Falls Economic Development Commission.
The Otter Tail project was aided by Minnesota's Job Opportunity Building Zone (JOBZ) initiative, which is the state's rural economic development program. The program provides tax relief to companies that start-up or expand in Minnesota. Longtin said equipment purchases during construction are exempt from state sales tax.
CHS Inc. is slated to procure corn for the ethanol project. Longtin said he expects most of the corn to come from southwest of the plant, although he added that the Minnesota corn-growing region is expanding farther north. The plant is likely to see competition from a 100 MMgy plant being developed by U.S. BioEnergy near Hankinson, N.D. A ceremonial groundbreaking was held in August for U.S. Bio Hankinson, which is 60 miles southwest of Fergus Falls along the North Dakota and South Dakota border. The project has yet to start construction. "There will be some competition as you go west," Longtin told EthanolProducer.com. "It's inevitable."
Until Otter Tail Ag starts up in March 2008, Central Minnesota Ethanol Co-op. remains the state's farthest north operational ethanol plant. Minnesota has 16 operating ethanol plants with more than 510 MMgy of capacity. Three more plants are under construction with more than 215 MMgy of capacity.
Otter Tail Ag Enterprises LLC
Location: Fergus Falls, Minnesota
General contractor: Harris Mechanical
Process technology: Delta-T Corp.
Capacity: 57.5 MMgy
Feedstock: corn
Ethanol marketer: Renewable Products Marketing Group
Distillers grains marketer: Commodity Specialists Co.
Carbon dioxide marketer: N/A
Broke ground: October 2006
Target start-up date: March 2008
Dave Nilles is Online Editor for Ethanol Producer Magazine. Reach him at dnilles@bbibiofuels.com or (701) 373-0636.
Posted: 1:25 p.m. CST Wednesday, November 15, 2006
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