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Ethanol plant planned for southwest Minnesota

Agriculture.com Staff 04/13/2006 @ 11:17am

US BioEnergy Corporation announced today that it plans to construct an ethanol plant with a capacity of 100 million gallons per year just east of Springfield, Minnesota. The site is on US Highway 14 and the DM&E railroad.

The company has obtained land options, but the deal is contingent on zoning, permitting, tax incentives and financing.

"One thing that attracted us to this site was the ability to work closely with Harvest Land Cooperative and CHS for corn origination. We need to have strong local relationships to make a plant of this size successful and we have that with these two groups," said Steve Myers, senior vice president of US BioEnergy. The company has initial agreements in place with those two grower groups to assist with the corn origination for the plant.

Mike Weelborg, general manager of Harvest Land Cooperative, said, "This plant's corn demand will be a good thing for this region. An increase in demand for corn usually means good economics for local farmers."

The proposed natural-gas fired, dry-grind ethanol facility would likely consume approximately 37 million bushels of corn, produce 320,000 tons of dried distillers grains annually, and employ more than 40 people.

US BioEnergy is currently constructing ethanol plants in Iowa and Michigan. Others are under development in Minnesota and North Dakota.

US BioEnergy Corporation announced today that it plans to construct an ethanol plant with a capacity of 100 million gallons per year just east of Springfield, Minnesota. The site is on US Highway 14 and the DM&E railroad.

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