Central Illinois puts 37 Mgy plant up for sale after financing efforts fail; project more than $120 million over initial $40 million budget

Central Illinois Energy has put its 37 Mgy Canton, OH ethanol plant up for sale after failing to secure $30 million in additional funding. Credit Suisse, the lead bank among the lenders, is reportedly forcing the sale. The plant was originally projected to cost $40 million, but has spent nearly $130 million on the project.

Recently, construction firms filed $20 million in mechanic’s liens against Central Illinois Energy. The liens were filed after non-payment of construction and engineering bills for the plant.

The shakeout from falling ethanol and rising corn prices has hit Illinois hard. Three other corn ethanol projects have been cancelled or delayed, in addition to the reorganization of Central Illinois Energy. Aventine Renewable Energy canceled a plant expansion in Pekin, and Alternative Energy is facing financing delays for its proposed plants in Kankakee and Greenville. The Pekin project would have added 113 Mgy in production capacity. In all, Aventine has suspended work on five projects with 565 Mgy in planned capacity.

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