Minnesota corn ethanol project on hold due to economic conditions

January 31, 2008

In Minnesota, a proposed corn ethanol plant, in Watonwan County in the south-central part of the state, is on hold pending improvements in economic conditions. Watonwan Energy has pinned its development hopes on a reduction in corn prices, which topped $5 a barrel this week for the March contract at the Chicago Board of Trade.

Throughout the Midwest, numerous ethanol plant projects are stalled or canceled due to the recent downturn in ethanol margins or opposition by local officials.

In Minnesota, Agassiz Energy announced a suspension of its $115 million ethanol plant near Erskine late last year owing to financing difficulties associated with high corn costs and reduced ethanol prices.

Other projects which suspended construction, halted production, or were rejected by local officials in the Midwest include:Â Glacial Lakes Energy’s plant in Meckling, SD; Chippewa Valley’s 40 Mgy plant in Benson, MN; and the Alchem ethanol plant in Grafton, ND; the Global Renewable Energy plant was rejected narrowly by county officials; Heartland Energy’s proposed 55 Mgy plant in Pike County plant was unable to secure financing; Aventine Renewable Energy cancelled a 113 Mgy plant expansion in Pekin, and Alternative Energy has faced financing delays for its proposed plants in Kankakee and Greenville.

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Written by Jim Lane · Filed Under Producer News