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ENERGY COMMISSION: Ethanol Plant Stays on Track: Official: It's a 'Huge Project That Takes a Long Time'

Posted on: Wednesday, 8 February 2006, 09:00 CST

By Ryan Bakken, Grand Forks Herald, N.D.

Feb. 8--CROOKSTON - The prospects for an ethanol plant near Erskine, Minn., remain on track, a company official told the Polk County Board of Commissioners Tuesday.

There had been little public word about Agassiz Energy LLC since April, raising speculation that the project was in a holding pattern, if not grounded. But lately, the group has volunteered that it's alive and kicking.

The latest stop for Don Sargeant, consultant and chairman of Agassiz Energy LLC, was the county board. He said progress continues on developing the plant, which could produce up to 70 million gallons of ethanol annually. The latest example of progress was that soil test borings were scheduled on the proposed site this morning.

Sargeant said he was there to keep the commissioners informed, but it wasn't just a courtesy call. Agassiz Energy is asking the county to build a one-mile stretch of road capable of handling 10-ton traffic. And it wants the county landfill to handle its coal ash.

"If we did that, we'd take the life of the landfill from 30-plus years down to 10 years," said Bill Olson, the landfill facility manager. "The county's philosophy always has been to extend the life of the landfill. That's why we burn trash at the plant in Fosston."

Olson said a consultant's recommendation on the request is expected in two weeks. "They still could do their own landfill," Olson said. "In fact, it might be cheaper for them to do their own."

Sargeant said the financial plan is in place. The next step is completing the environmental review to show it won't be detrimental through emissions, water discharge, noise or traffic. Environmental standards need to be met to earn a permit from the Minnesota Pollution Control Agency.

"We have not run into anything that says this is not feasible financially or environmentally," Sargeant said. "We have not hit any detour.

"This is simply a huge project that takes a long time."

Sargeant's pitch for county board support was that it would be a big benefit for the entire region. The plant's 28 jobs would be just a small fraction of the total employment and economic enhancement that would be created, he said.

The climate for producing ethanol has improved with the higher price of gas and with greater support from city, state and federal governments.

The plant would cost an estimated $110 million to build. It would mean an extra 5 to 10 cents per bushel for growers selling the corn, he said. The byproduct would be inexpensive yet nutritious feed for regional livestock operations. "You'd see a lot of jobs created in a 60-mile radius," he said.

The plant would be built on the southwest corner of the junction of U.S. Highways 2 and 59. It also would be at the corner of two railroad lines. This would allow for easy shipment of corn into the plant and the shipment of ethanol and distillers grain out of the plant.

Under Agassiz' timeline, the plan calls for construction to begin in October, with a plant opening in December 2007.

Bakken reports on local news and writes a column. Reach him at 780-1125; (800) 477-6572, ext. 125, or rbakken@gfherald.com.

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Copyright (c) 2006, Grand Forks Herald, N.D.

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Source: Grand Forks Herald (Grand Forks, N.D.)

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