In-Plant Capital Projects Lead U.S. Ethanol Construction Spending

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Written by Eric Funderburk for IIR News Intelligence (Sugar Land, Texas)

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Summary

More than $800 million of ethanol-related construction is underway in the U.S., with billions of dollars' worth of future projects in the planning and engineering pipeline.

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Midwest Concentration

U.S. ethanol projects probably are where one would expect them to be: Industrial Info Resources data show $806 million worth of current U.S. ethanol construction, with the most projects in Indiana, Iowa and Nebraska. In addition, Industrial Info Resources is tracking another $10 billion worth of U.S. ethanol projects in the planning and engineering stages, although not all of these will move forward as planned.

Indiana Renovation

One of the largest current ethanol projects is underway in Indiana, where Verbio is renovating a plant in South Bend to produce marketable byproducts such as liquid fertilizers while reducing energy consumption and boosting ethanol production to 85 million gallons per year. Up to 10 new buildings are being added to the site, as well as a renewable natural gas (RNG) unit that will process the dried distillers grains from ethanol production into 2.8 billion cubic feet per year of RNG. The RNG plant will include 16 anaerobic digester tanks. The ethanol plant renovation and accompanying RNG plant are expected to be completed in 2027.

Expansion Projects

Most of the ongoing ethanol projects being tracked by Industrial Info Resources involve improvements such as renovations and additions at existing facilities. Plant expansion projects account for more than a third of current spending and are underway in North Dakota, South Dakota and Illinois.

In North Dakota, Hankinson Renewable Energy is expanding the capacity of its 150 million-gallon-per-year plant in Richland County, while in South Dakota, Dakota Ethanol LLC is investing $75 million to grow production at its ethanol plant in Wentworth from 100 million gallons per year to 150 million gallons annually.

Industrial Info Resources data find more than $345 million worth of expansion projects are planned for future dates at U.S. ethanol plants, with one of the most notable set for Annawan, Illinois, where CHS Incorporated is expected to begin work within weeks to grow its 130 million-gallon-per-year plant into one that produces 160 million gallons per year.

New Mexico

Smaller projects also abound. In Portales, New Mexico, Navitas Global LLC for around two years has been retrofitting an idled ethanol plant with new equipment to produce up to 10 million gallons per year as well as between 4 million and 8 million pounds per year of high-protein feed, depending on ethanol production. The project is expected to be completed later this year.

U.S. Ethanol Trends

Multiple U.S. ethanol construction projects are planned for the future, with a heavy showing of carbon capture and sequestration (CCS) projects, which account for more than 50 planned projects valued at a combined $3.64 billion, although Industrial Info Resources has judged only 14 of these, valued at a combined $690 million, as having a medium or high probability (70%-99%) of moving forward as planned. Among these higher-probability projects, Iowa emerges as the clear leader, with a quarter of a billion dollars in planned CCS projects at ethanol plants.

Maintenance

In addition to capital projects, Industrial Info Resources also is tracking details on more than 350 planned maintenance turnarounds and programs at ethanol plants throughout the U.S.

Key Takeaways

• Industrial Info Resources is tracking $806 million worth of ethanol-related construction underway in the U.S.
• Multiple ethanol plants are considering installing CCS units at a future date.
• Industrial Info Resources' ethanol project coverage also includes details on more than 350 future maintenance events at U.S. ethanol plants.

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About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 trillion (USD).