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East Fork will try to live up to its motto Tuesday, July 11, 2006
Agri News staff writer
ALGONA, Iowa -- With the motto, "more gallons, more energy, more independence," East Fork Biodiesel LLC launched its equity drive last week at Algona High School.
East Fork wants to build the largest biodiesel refinery in Iowa, just east of Algona. Ken Clark, president of the East Fork Biodiesel LLC Board of Directors, called it "the people's plant." The minimum required to invest in the biodiesel facility is $10,000, far lower than many other renewable energy projects. The offering is only open to Iowa residents.
"The board made the decision that they want to involve as many people as possible," said Clark, a farmer and retired chemical engineer from Exxon. "I say the more the merrier."
East Fork Biodiesel has purchased an option on 40 acres east of Algona as a potential plant site. The refinery will produce 60 million gallons of biodiesel per year using primarily soybean oil. The plant will meet ASTM D 6751 fuel standards. Major engine manufacturers John Deere, Daimler Chrysler, Volkswagen and Case IH New Holland require the use of biodiesel meeting this standard in their products. The plant will employ 36 people.
East Fork Biodiesel will partner with Renewable Energy Group for design and building services. REG was formed by West Central Cooperative of Ralston, a national leader in biodiesel manufacturing and marketing, and Todd & Sargent, an Ames construction firm. East Fork is negotiating an agreement with West Central for operational services.
REG designed and built biodiesel plants at Ralston and Wall Lake in Iowa and Glennville, Minn. It has plants under construction in Newton, Washington and Farley and is working on additional projects in Missouri, Illinois and southern Iowa.
The plant will use a continuous flow process operating 24 hours per day, seven days a week, 330 days each year. Glycerin, a byproduct of the process, will also be marketed.
Clark said they hope to start construction this fall and produce biodiesel by October 2007.
Debra and Dale Ringoen drove to Algona from Bluffton for the investor meeting and planned to invest in the plant.
The couple decided to come to the first meeting because a plant proposed at Farley raised all the money it needed at its first meeting. They had hoped to invest and missed the chance.
"We decided to get to the very first meeting so we don't let another opportunity slip by,'' Debra Ringoen said. "We think it's a good idea to invest in renewable fuels because we have to gain independence from foreign oil. I also like the environmental aspects."
Total project cost is $69 million which includes site acquisition, plant construction, startup and working capital. East Fork Biodiesel is raising $31 million in stockholder equity and will obtain long-term financing for an additional $34.5 million. Prior to the equity drive, $4 million in seed money was raised to pay for initial costs.
The plant will take advantage of state and federal tax incentives, Clark said. Last month the project received $400,000 in funding from the Iowa Department of Economic Development.
In addition to Clark, members of the East Fork Biodiesel Board of Directors are Kenneth Clark, president; Michael Duffy, vice president; Dale Mechler, treasurer; Michael Kohlhaas, secretary; James Black, Lennon Brandt, Al Kramer, Jack Limbaugh Jr., Dr. Akshay Mahadevia, James Meyer, Dan Muller, Larry Sterk and Dean Ulrich. |
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