Midwest AgEnergy starts building USD-155m biorefinery in N Dakota

Aug 13, 2013 - US green fuel firm Midwest AgEnergy Group on Friday officially commenced construction of a USD-155-million (EUR 116.5m) biorefinery in North Dakota that is to produce 65 million gallons (246 million litres) of ethanol a year.

Governor Jack Dalrymple took part in the ground breaking ceremony at the site in the Spiritwood Energy Park east of Jamestown, according to a statement on the governor office’s website. The state is supporting the project with research funding, a low-interest loan, loan guarantees and tax incentives on construction and operation, according to the press release.

Midwest AgEnergy will build the facility next to a power plant of its parent -- not-for-profit cooperative Great River Energy -- thus receiving low-cost steam to cut its expenses. The new plant is expected to come on stream in the first months of 2015. Apart from ethanol, the biorefinery will also produce 198,000 tonnes of distillers grains for livestock feed and 6,900 tonnes of fuel-grade corn oil for biodiesel. Every year it will buy some 23 million bushels of corn from local farmers.

The governor’s office pointed out that up to 2006 North Dakota had the capacity to produce only 30 million gallons of ethanol. After that four companies constructed plants in the state, bringing the local ethanol production capacity to 400 million gallons per year.

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