Dakota Value Capture Moving Forward with $60 Million Ethanol/Feedlot Complex

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Researched by Industrialinfo.com (Industrial Information Resources, Incorporated; Houston, Texas). More than 1,000 agricultural farmers and private entities associated with Dakota Value Capture Co-op (Pierre, South Dakota) have received $35 million in financing for a new $60 million ethanol plant and feedlot complex to be located near Pierre, South Dakota.

Contingent on an additional $10 million in funding from the US Dept of Agriculture, Dakota Value Capture has raised $26 million on their own with a successful equity drive. Upon receiving the USDA's loan, CoBank of Omaha has agreed to fund the project.

Working with management team Prime Technologies LLC (Pierre, South Dakota), Dakota Value Capture has selected Katzen International (Cincinnati, Ohio) as the primary technology provider for the ethanol plant. Agricultural Engineers (Uniontown, Kansas) has received engineering and construction responsibilities for the cattle feedlot and methane recovery projects.

The corn-based dry mill ethanol plant will be designed to produce 20 million gallons per year of fuel grade ethanol and 140,000 tons per year of distiller's grain.

Distiller's grain, a by-product of ethanol production, will be fed directly to the 65,000 head of cattle that will be housed on-site in climate controlled barns at the 310 acre site located about 190 miles northwest of Sioux Falls, South Dakota.

An anaerobic digestion and waste management system will also be installed to recover methane gas to be used as fuel for the ethanol plant.

Construction on the complex is expected to begin sometime in the early third quarter of this year. Dakota Value Capture is projecting that the complex will take 12 to 14 months to construct.

Jay Brunson, Synthetic Fuels Manager for Industrialinfo.com, added "A recent University of South Dakota study said that building ethanol plants next to large cattle feed lots or dairies could create more than $500 million in new wealth and jobs in rural areas of South Dakota."