Kansas' Arkalon Ethanol Plant Back in Production After Explosion

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Researched by Industrial Info Resources (Sugar Land, Texas)--The Arkalon Ethanol LLC (Liberal, Kansas) plant was back in operation after an explosion last weekend caused an estimated $1 million to $2 million in damage. The cause of the explosion is under investigation. Arkalon is a subsidiary of Conestoga Energy Partners LLC (Garden City, Kansas).

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Plant staff said the blast was caused by a combustion burner in the feed dryer system on the second floor. The plant is located east of Liberal, Kansas.

The corn dryer will need a massive overhaul. However, the ethanol production components were not damaged and the plant is currently producing fuel.

The company issued a press release on Wednesday further detailing the damage.

The Arkalon Ethanol plant produces 110 million gallons of ethanol per year and is licensed to produce undenatured ethanol for export to Europe. The Arkalon plant is located on a mainline of the Union Pacific Railroad (NYSE:UNP) (Omaha, Nebraska). It can accommodate the high-speed unloading of unit trains of grain (110 cars), and the loading of unit trains of ethanol (95 cars).

Each year, the plant produces more than 320,000 dry tons of high-quality distillers grains--a product of the distillation of corn or milo--for sale and distribution to feedyards throughout the central and southern High Plains. In addition, the plant produces about 290,000 tons of carbon dioxide per year and sells it to a subsidiary of an independent domestic oil company with expertise in enhanced oil recovery.

Conestoga Energy Holdings LLC is an ethanol production and management company headquartered in Liberal, Kansas. Through its subsidiaries, it owns two plants in Kansas, with combined annual production capacity of 165 million gallons of ethanol per year, and manages three plants in Kansas and Texas with an annual production capacity of 205 million gallons.

The company also provides operational and management services for both the Arkalon plant and the Bonanza plant, as well as for the 40 million-gallon-per-year ethanol production plant owned by Diamond Ethanol LLC, in Levelland, Texas. The Levelland plant produces more than 100,000 dry tons of high-quality distillers grains for sale and distribution to feedyards throughout the southern High Plains. The plant, which is approximately 25 miles west of Lubbock, is located on the West Texas & Lubbock Railway.

Another subsidiary, Conestoga Logistics LLC, provides transportation and logistics services for the Garden City, Liberal and Levelland plants, and attempts to lower effective operating costs at the plants by actively seeking backhaul freight opportunities.

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