Ag Processing Incorporated to Acquire Iowa Biodiesel Plant

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Researched by Industrial Info Resources (Sugar Land, Texas)--Ag Processing Incorporated (AGP), a farmer-owned cooperative based in Omaha, Nebraska, has signed a letter of intent to acquire the former East Fork Biodiesel LLC plant in Algona, Iowa.

Investor-owned East Fork Biodiesel started operations at its $70 million plant in December 2007. However, because of the economy, the rise of soybean prices, and the expiration of the $1-per-gallon tax credit, the plant was shuttered a little more than a year later.

The plant remained idle, and in December 2010, CoBank Farm Credit Holdings LLC (Denver, Colorado) acquired the plant's assets for $12 million. Enervation Advisors LLC (Port Jefferson Station, New York) was going to acquire the plant in March 2011, but the contract fell through, and the company acquired a smaller biodiesel plant in Keokuk, Iowa.

The production facility will require significant upgrading and retrofitting before AGP commences operations in September 2011. The campus is located on 140th Street in Algona, Iowa, approximately 42 miles north of Fort Dodge, Iowa. The plant has a nameplate annual production capacity of 60 million gallons and will have about 30 employees.

Currently, there are five operational biodiesel plants in the state of Iowa, producing a combined annual output of about 120 million gallons. Five more are in the planning stages.

Industrial Info's databases provide a comprehensive outline of all current development activities in the emerging alternative fuels market. Our North American Biodiesel Database covers 139 operational plants and 92 plants under development. Our North American Ethanol Database covers 214 plants currently in operation and 126 plants under various development phases. Our North American Wood Fuel Pellet Database includes 66 operational plants producing greater than 25,000 tons annually, and 40 projects under progress.

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