55 Mgy Gateway Ethanol plant shuts down due to financial restructuring

February 29, 2008

In Kansas, the 55 Mgy Gateway Ethanol plant in Pratt shut down due to financial restructuring. The plant commenced operation last fall after commencing construction in January 2006. The owners expect to restart the plant following recapitalization.

The closing is the second setback in as many days for Kansas ethanol. Yesterday, Cargill canceled plans to construct a 100 Mgy corn ethanol plant near Topeka, citing tough economic conditions. The proposed plant had been in the permitting stage with no construction yet underway.

Emerald Renewable Energy, a Cargill subsidiary, had run 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 have produced 330,000 tons of distillery grains, use 1.2 million gallons of water per day, and create 40 jobs.