Ethanol Plants Under Construction

September 10, 2001

The farmer- owned Badger State Ethanol, LLC, of Wisconsin has begun construction on an ethanol production facility in Monroe, WI. The plant will process corn into 40 million gallons of ethanol per year. Fagen, Inc. - the Granite Falls, MN, design-build contractor - is spearheading the project. Fagen is building four of the 13 ethanol plants currently under construction.

"Construction on the Badger State Ethanol plant is an important step forward for ethanol production in the state of Wisconsin," said Bob Dinneen, president of the Renewable Fuels Association. "Badger State Ethanol's farmer-owners are to be commended for helping the ethanol industry grow into new areas of the country. The dramatic growth of the ethanol industry during the last few years has largely been due to the faith and investment of farmers. The farm community and the ethanol industry are committed to producing a domestic, renewable fuel to provide states such as California and New York a safe, clean-burning gasoline additive alternative."

Since 1999, more than a dozen ethanol production facilities have opened and six major expansions to existing facilities have been completed. Fifty-seven ethanol plants now have the capacity to produce more than 2 billion gallons per year, according to RFA.

Including Badger State Ethanol, the 13 ethanol plants currently under construction will result in 330 million gallons of new production capacity. More than 30 existing companies are undergoing expansions totaling 310 million additional gallons and dozens of additional proposed production facilities across the country are in various stages of development, engineering and financing. Annual ethanol production capacity is expected to reach 3.5 billion gallons during 2003.

Gary Kramer, CEO of Badger State Ethanol, announced the company had raised more than $18 million in investment and an additional $32 million in financing. With financing complete, dirt work and concrete work have begun.