Kentucky Continues to Grow Ethanol Production Capacity

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Researched by Industrial Info Resources (Sugar Land, Texas). Grain distilleries are not uncommon in the state of Kentucky, considering there are currently over a dozen of them operating within the state’s borders; however, most of them produce a product for sipping rather than putting into your gas tank. Enter Bluegrass BioEnergy, the latest player to enter the fuel ethanol market in Kentucky. Recently, a Milan, Tennessee businessman Jim Allen announced the formation of Bluegrass BioEnergy, LLC (Fulton, Kentucky) and the company’s intentions to build a new 55-million-gallon per year ethanol plant in Fulton, Kentucky. Currently, the company is working out financing options. Construction could get underway as early as July of this year and commence operation twelve months later.

The plant will have a nameplate capacity of 55 million gallons per year and will incorporate an expansion option that could increase the plant’s capacity to 100 million gallons per year, if needed. The plant will chew up roughly 19 million bushels of locally grown corn and also produce distillers dried grains, a by-product of ethanol production. The plant is planned to being operation in mid-2007.

Deals have already been struck with ethanol plant builder Lurgi PSI (Memphis, Tennessee) to build and have an equity interest in the plant, and wholesale commodities marketer Noble Americas Corporation will also have a piece of ownership and aid the company in getting the ethanol to market.

As of now, two ethanol plants make their home in Kentucky. Commonwealth Agri Energy (Hopkinsville, Kentucky) has had a commercial scale 33-million-gallon per year plant operating in Hopkinsville since early 2004, and Parallel Products (Louisville, Kentucky) has operated a smaller scale 5.4-million-gallon per year plant that utilizes liquid beverage waste to make ethanol. These two are the only plants currently producing the renewable fuel in the state.

View Plant Profile – 1069297, 1060387, 1047650

If you are interested in obtaining information on the burgeoning ethanol, biodiesel and renewable fuels industry in Kentucky and North America, please visit our website and take a look at how Industrial Info can plug you into a growing, capital intensive industry. 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 seventeen operational biodiesel plants and 40 biodiesel plants under development.

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