Gateway Ethanol to resume production, refinancing imminent

In Kansas, the 55 Mgy Gateway Ethanol plant will resume production in Pratt this month after being closed for several weeks during a financial restructuring. Terms of the refinancing were not available, but company officials said that arrangements were nearly complete and the plant could resume production as soon as this week. after being shut down for several weeks.

The plant commenced operation last fall after commencing construction in January 2006. The owners expect to restart the plant following recapitalization.

The closing had been one of a series of delays and cancellations affecting the Kansas ethanol industry. Last month, 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.

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