Despite the tough economic climate for all industries, including ethanol, there are still some plants moving toward production.
BioFuel Energy Corp. of Denver has reached a debt repayment plan with Cargill and two other debt holders to help the company get two plants on-line in Nebraska and Minnesota. According to a release from BioFuel Energy, “Despite the significant hedging losses incurred and announced in August, the Company’s operating subsidiaries have remained financially sound and continued to meet all their obligations” with the exception of Cargill and the two holders of its subordinated debt. The company hopes to have its Wood River, Nebraska and Fairmont, Minnesota plants certified and running at capacity by year-end.
The first ethanol plant under construction in Pennsylvania opened its doors to state officials and members of the media this week. Construction of the BioEnergy International plant in Clearfield is set to be complete late next year and once online it will produce 100 million gallons of ethanol annually.
Finally, a Missouri state appeals court upheld a judge’s ruling in favor of a company with plans to build an ethanol plant in southern Webster County. The Appeals Court ruling agreed that a group claiming that construction of the plant by Gulfstream Bioflex Energy (GBE) would reduce groundwater supplies in the region and harm property values failed to prove their case. However, it is not yet known whether GBE will continue on with the project which has been delayed more than two years by legal challenges.