One of the nation's largest fuel-consuming states is taking a step toward replacing part of its petroleum gasoline supply with renewable ethanol. Dallas-based White Energy Holding Co. LLC held a ceremonial groundbreaking in mid-July for a 100 MMgy nameplate capacity ethanol facility in Hereford, Texas. Fagen Inc., which will oversee construction of the $117 million facility, was expected on-site in August, according to a White Energy spokeswoman. ICM Inc. is designing and engineering the facility.

Initial dirt work is underway on the plant, which is expected to come on line in late 2007.

White Energy Hereford LLC is the second step toward White Energy's stated goal of owning and operating renewable fuels facilities with capacities of 500 MMgy to 700 MMgy within the next several years, according to White Energy CEO Kevin Kuykendall. The company currently operates a 45 MMgy plant in Russell, Kan., that was recently purchased from U.S. Energy Partners LLC. White Energy plans to acquire and/or construct three to five ethanol plants and two to three biodiesel plants during the next three years.
The Hereford plant is ideally located closer to destination markets than traditional Midwest ethanol facilities. Hereford is southwest of Amarillo in the northwest region of Texas.

White Energy Hereford intends to use a mix of corn and milo as feedstock. Up to 10 million bushels of milo per year will be purchased from the local Hereford Grain Co-op, according to White Energy. Corn will be supplied by Archer Daniels Midland Co. (ADM). The ethanol plant will be adjacent to an existing 9.5 million-bushel grain elevator and a 2.5-mile rail loop track owned and operated by ADM.

The plant will produce 100 percent distillers wet grains, according to the White Energy spokeswoman. The grains will be marketed to the abundant local dairy and cattle feedlots. At this time, White Energy doesn't plan to capture carbon dioxide, although that hasn't been ruled out for the future.

A second ethanol company is considering developing an ethanol plant near Hereford. Panda Ethanol Inc. previously announced its intent to construct a 100 MMgy manure-fueled ethanol plant in the area. The company recently announced it had closed a private placement of approximately 14.9 million shares of its common stock. The proceeds will be used to help finance construction of the plant. White Energy's spokeswoman told EPM the Panda Ethanol project isn't expected to impact the development of White Energy's facility.

White Energy Hereford LLC
Location: Hereford, Texas
Design/builder: Fagen Inc.
Process technology: ICM Inc.
Capacity: 100 MMgy
Feedstock: corn/milo
Ethanol marketer: Murex North America
Distillers grains marketer: Quality Distillers Grain
Carbon dioxide marketer: N/A
Broke ground: July 2006
Target start-up date: fourth quarter 2007

-Staff Report