Proposed ethanol and biofuel projects in Virginia, Kansas and Iowa run into tough permitting, financing conditions

In Kansas, Emerald Renewable Energy, a Cargill subsidiary, ran into tough opposition for its proposed 100 Mgy ethanol plant in Shawnee County. Nearly all 29 speakers at a public hearing opposed the plant, which would release 300 to 400 tons of emissions per year, equivalent to the emissions of 50-70 cars. The proposed plant would also produce 330,000 tons of distillery grains, use 1.2 million gallons of water per day, and create 40 jobs.

In Virginia, the proposed $400 million International Bio Energy ethanol plant is in trouble because it says it can’t comply with 75 stipulations imposed by the Chesapeake City Planning Commission, or reduce ethanol output to 108 million gallons in the first year without a permit to expand to 216 million gallons in the future. International Bio Energy says that bank loans will not be feasible with the lower production figure.

In Iowa, the town of Sioux City and the executives of Chief Energy are optimistic that they will proceed with their planned renewable fuels business park despite the difficult economic outlook for ethanol.

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