News Releases for March 2006
March 15, 2006
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Hoeven, Industry Officials Announce 100-Million Gallon Ethanol Production Facility Near Hankinson
HANKINSON, N.D. – Gov. John Hoeven today, along with officials of US BioEnergy, announced plans to construct North Dakota’s largest ethanol plant near Hankinson, N.D. Contingent on zoning, permitting and tax incentives, US BioEnergy, which has partnered with Gold Energy, LLC, intends to construct a 100 million gallon per year (mgy) ethanol plant on this site. A plant this size will consume approximately 37 million bushels of corn and will produce 320,000 tons of distiller’s grain annually.
The $145 million project will employ an average of 150, and up to 300, workers during the construction phase. When fully operational, the facility will employ 40 to 45 full-time workers with an annual payroll of $2.4 million.
“We have put strong incentive programs in place for biofuels and worked diligently with the Gold Energy Board and US BioEnergy to develop this plant in North Dakota,” Hoeven said. “It will have a big impact on Hankinson and the southeastern part of our state, both in more revenues for our farmers and good jobs in rural North Dakota. This ethanol plant will be the third new plant under construction this year in our state, along with a biodiesel plant, and we are working on more.”
Terry Goerger, a member of Gold Energy, LLC, said, “By partnering with US BioEnergy, we are joining a team of ethanol experts that can get our plant off the ground quickly. Once we’re operational, there will be a local board with representatives from this area offering leadership to this plant. We like that about this company; they have Midwest roots, just as we do, and they know how to get a plant up and running.”
CHS, one of the nation’s largest farmer-owned cooperatives, owns a 24 percent share of US BioEnergy. President and Chief Executive Officer John Johnson said, “The entry into the North Dakota renewable fuels manufacturing sector is a positive step for CHS members and customers, particularly given our long history as an energy supplier in the state.”
According to Hoeven, the business investors will benefit from a 30 percent state investment tax credit and an exemption on state sales tax for new equipment and construction materials. The company also qualifies for the state Ethanol Production Incentive program, which provides a safety net for ethanol producers.
Hoeven said the State of North Dakota has also made assistance available to the project through the Department of Commerce and the Bank of North Dakota. These include the Commerce Department’s Development Fund, New Venture Fund, and Agricultural Products Utilization Commission, as well as BND’s MATCH and PACE programs. The North Dakota Department of Transportation has assisted with transportation planning and road improvements.
Randy Schneider, Gold Energy member said, “The community of Hankinson and the state of North Dakota have supported this project from day one and we are anxious to see everyone’s hard work pay off and get a plant off the ground.”
Gordon Ommen, CEO of US BioEnergy added, “A plant like this will bring millions of dollars into this community as well as high paying jobs. That’s what is great about this industry; it’s revitalizing the Midwest by offering opportunities for our young people to stay close to home, it’s bringing money into our small towns and it’s benefiting our farmers by increasing the demand for their corn.”
“Wahpeton Economic Development and the Lake Agassiz Regional Council worked closely with the Department of Commerce and other partners on this project,” Shane Goettle, Commissioner of the North Dakota Department of Commerce, said. “This plant will have a huge impact on this entire region and it's a great example of what we can accomplish when we work together.”
About US BioEnergy Corporation
US BioEnergy Corporation is a Brookings, S.D. based company that is building large, efficient biofuel plants on strategic sites, partnering with local farmers and communities to provide renewable fuels to America. For more information visit US BioEnergy’s website.
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