Farmer-Owned Ethanol Plants Start Building

November 21, 2001

Three ethanol plants have begun construction within the last week, according to the Renewable Fuels Association (RFA). The three plants are farmer owned. Pine Lake Corn Processors LLC in Steamboat Rock, IA, and Husker Ag Processing LLC in Plainview, NE, both held ground breaking ceremonies Nov. 16. Little Sioux Corn Processors LP in Marcus, IA, broke ground Nov. 19.

"Construction on these three plants sends a strong signal to Congress that the ethanol industry is ready, willing and able to lead the way toward energy independence," said Bob Dinneen, president of the RFA. "Farmers are ready to serve on the front lines of the battle for energy security and their investment in these plants is proof-positive. I commend the farmer-owners of these plants for working to reverse our continued reliance on Middle Eastern oil."

The Pine Lake Corn Processors plant will produce 15 million gallons of ethanol per year. "The opportunity to provide added value to local agriculture through the development of an ethanol facility has never been greater," said Matt Crouse, Pine Lake project coordinator. "It is time farmers and their families take hold of their future and create their own security and stability."

Husker Ag Processing will produce 20 million gallons of ethanol per year. Fagen, Inc. - the Granite Falls, MN, design-build contractor - is spearheading the project. Fagen is also building the 40 million gallon per year Little Sioux Corn Processors plant. In total, Fagen is building six of the 16 ethanol plants now under construction.

"We're pleased to work with these two groups to turn dreams into reality," said Wayne Mitchell, Fagen's vice president for technology and business development. "This makes five ‘greenfield' ethanol projects we've begun this year. Obviously it's an exciting time to be a part of the growing ethanol industry."

Since 1999, more than a dozen ethanol production facilities have opened and several major expansions to existing facilities have been completed. Today, 57 ethanol plants have the capacity to produce over 2 billion gallons per year. There are 16 ethanol plants currently under construction that encompass over 400 million gallons of new production capacity. Dozens of additional production facilities across the country are in various stages of development, engineering and financing.