News Releases for October 2005
October 4, 2005
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Hoeven Announces New ADM Biodiesel Plant In Velva
BISMARCK, N.D. - Gov. John Hoeven today announced that the Archer Daniels Midland Co. will construct a new 50 million gallon biodiesel plant adjacent to the company’s canola crushing plant in Velva.
“We’ve put strong incentives in place for renewable fuels, and we are excited to be working with ADM to develop this new biodiesel plant in North Dakota,” Hoeven said. “Investment in the plant also signals greater economic stability and growth for the region and ADM’s commitment to North Dakota.”
The new facility will convert canola oil from the plant into biodiesel fuel, and use the equivalent of 600,000 acres or 400,000 – 450,000 tons of canola, adding further value to the crop. The facility has tripled production of canola oil in recent years.
Hoeven worked with industry leaders and the Legislature in the last session to pass a number of incentives to attract biodiesel facilities to the state. These include, among others:
- A $400,000 Biodiesel PACE program, which will provide up to $650,000 in interest buy-down for a biodiesel plant, when combined with $250,000 in regular PACE.
- A sales tax exemption on all new processing equipment and plant infrastructure.
- An income tax credit for any fuel supplier that blends biodiesel fuel to the ratio of 5 percent, or B5. The credit equals five cents per gallon of fuel blended.
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