Ethanol Grain Processors Prepares to Start Construction on Tennessee’s 2nd Fuel Ethanol Plant

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Researched by Industrial Info Resources (Sugar Land, Texas). Farm-owned Ethanol Grain Processors LLC (Obion, Tennessee) has announced plans to build a new fuel ethanol plant in Obion, Tennessee and become the second fuel ethanol plant operating in the state. The owners are in the final stages of pre-construction activity and have targeted the fall of 2006 for a possible construction kick off date.

Plans are to construct a 100 million-gallon per year ethanol plant that will process 36 million bushels per year of corn and sweet potato feedstocks to produce the renewable fuel and by-product distillers dried grain.

Construction is expected to take fourteen months to complete and is expected to be online by late 2007, making it the second operating ethanol plant in the state. Ethanol Grain Processors will join Tate & Lyle, whose Loudon plant went online in 1982, producing 67 million gallons per year of ethanol, as the only two ethanol producers in Tennessee.

The company has selected Fagen, Incorporated (Granite Falls, Minnesota) as the design-build contractor. With funding in place, Ethanol Grain Processors has been pushed toward the top of Fagen’s backlog of ethanol projects.

Ethanol Grain Processors is a producer-based business venture, 100% owned by 33 farmers who are predominantly from West Tennessee counties. They aspire to increase rural community income by increasing the market demand for corn by 36 million bushels through the transformation of corn into ethanol fuel, a premium liquid fuel that can extend petroleum imports. The company plans to purchase corn in West Tennessee counties with Obion, Weakley and Gibson counties each producing over 7.5 million bushels of corn per year.

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Industrial Info's Ethanol Production Database provides a comprehensive outline of all current development activities in the emerging synthetic fuels market. This database covers 123 ethanol plants currently in operation and 234 plants under development. It also covers fifteen operational biodiesel plants and 41 biodiesel plants underdevelopment.