Cargill's Emerald Renewable Backs Off Plans for Greenfield Ethanol Plant in Kansas

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Researched by Industrial Info Resources (Sugar Land, Texas)--Privately held agricultural giant Cargill Incorporated (Wayzata, Minnesota) and its newly formed ethanol subsidiary, Emerald Renewable Energy LLC, is backing away from plans to increase ethanol production through the development of a greenfield plant in Topeka, Kansas.

As first reported by Industrial Info on May 24, 2007, Emerald Renewable has purchased land near its existing Cargill AgHorizons in Tuscola, Illinois, as the first location for four greenfield 100 million-gallon-per-year fuel ethanol plants and started the permitting process. Industrial Info also uncovered at that time that the additional plant locations were to be in Topeka, Kansas; Rock Port, Missouri; and possibly Terre Haute, Indiana.

Back then, the company projected the cost to build the plants would be around $200 million a pop and corn prices and the economics for building new capacity were favorable. Today, corn futures are hovering near $5.30 a bushel and construction materials and labor and land costs to build a plant are at an all-time high. The price to build that same 100 million-gallon-per-year for $200 million has risen to an estimated $230 million to $250 million.

Cargill spokesman Bill Brady said, "Everything is on-hold," meaning that the proposed plants in Illinois, Missouri and Indiana could suffer the same fate.

The company continues to be a player in the fuel ethanol market and currently produces 35 million gallons of ethanol at its plant in Eddyville, Iowa, and is expanding its 85 million-gallon-per-year plant in Blair, Nebraska, by 110 million gallons that is expected to be completed this fall.

Industrial Info's Ethanol Database provides a comprehensive outline of all current development activities in the emerging alternative fuels market. This database covers 147 ethanol plants in operation and 530 plants under development. It also covers 98 operational biodiesel plants and 245 biodiesel plants under development.

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Industrial Info Resources (IIR) is a marketing information service specializing in industrial process and energy related industries with products and services ranging from industry news, forecasting, plant and project databases, as well as multimedia advertising campaign assistance.