press releases

For Immediate Release: 9/16/2007
Media Contact: Jason Kroeker at 507-444-2376
Press Staff Writer, Owatonna People's Press

Fueling up
By Jason Kroeker

CLAREMONT - A group of investors want to build a second ethanol plant in Claremont that would produce 55 million gallons of ethanol per year and create about 30 jobs.

Claremont Renewable Energy (CRE) would be located directly west of Al-Corn Clean Fuel near Highway 14 in Claremont on land owned by the existing ethanol plant. The plant would share management and a large rail track loop with Al-Corn. The track would be used for loading ethanol into rail cars.

The new plant would create about 30 jobs, according to Randall Doyal, CEO of Al-Corn, and produce about 55 million gallons of ethanol per year. In comparison Al-Corn has 35 employees and produces 45 million gallons of ethanol per year.

"CRE is standing on the platform that Al-Corn built," said Doyal.

The new ethanol plant would operate as a cooperative, using corn grown by shareholders to produce ethanol.

The new plant is expected to cost between $120 and $130 million to build, so Claremont Renewable Fuel is offering shares to the public to raise money. The cost per share is $3.50 and the minimum amount of shares a person can purchase is 5,000 shares.

Doyal, who has invested in Claremont Renewable Energy, said the cooperative needs to sell at least 10.4 million shares. Shares are available until Dec. 31.

"We need to know if we have a project or not," said Michael Weaver, attorney for the Claremont Renewable Energy cooperative.

Weaver said investors hope to break ground on the new ethanol plant in the spring of 2008 and open in the summer or fall of 2009.

Al-Corn and Claremont Renewable Energy held an informational meeting Saturday in Claremont and gave people tours of the Al-Corn facility to encourage people to invest in the new ethanol plant.

One thing the new ethanol plant will not receive that Al-Corn did is state subsidies. To get the ethanol program going in Minnesota the state promised to pay ethanol producers 20 cents per gallon of ethanol produced. The subsidies lasted for 10 years and most ethanol plants are nearing the end of their subsidy-period.

Since the ethanol industry is on solid footing now the state will likely not offer subsidies to start new plants.

"It was the best program I've seen in any state," Doyal said. Still, he believes another ethanol plant will be successful even without the state program.

Dale Ramsey of Blooming Prairie said he has already bought shares in the new ethanol plant. He grows corn and sells it to the ethanol plant, so he will benefit if the new plant is built.

When Al-Corn was built there were complaints that the fumes were coming into town, according to Claremont resident and former city council member Ralph Schwanke. The exhaust towers have been built taller, however, and Schwanke said the fumes have not been a problem since.

"The only thing I would hope is that they're getting all their ducks in a row with the state and the EPA," Schwanke said.

Doyal said Al-Corn is heavily monitored by the Minnesota Pollution Control Agency and equipment has been installed at the ethanol plant to comply with the agency's standards.