Levelland Hockley County Ethanol Expected to Return to Production by June

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Researched by Industrial Info Resources (Sugar Land, Texas)--Bankrupt investor-owned ethanol venture Levelland Hockley County Ethanol Coopertive's (Levelland, Texas) shuttered fuel ethanol plant in Levelland is expected to begin producing ethanol again by early June of this year. Energy developer, management and operator Tenaska Incorporated (Omaha, Nebraska) has stepped in with a tolling agreement that will put the Texas panhandle plant, located just west of Odessa, back to work.

The venture is still waiting for a U.S. Bankruptcy Court judge to okay the deal. The plant is essentially ready to restart. The facility experienced some freezing over the winter that broke piping, but all repairs have been made and trials performed.

The 40 million-gallon-per-year plant has been shuttered since January this year, and the company filed for bankruptcy in April due to the high corn market and low ethanol fuel prices. The reorganization calls for about $10 million in working capital to repay creditors.

Tenaska will supply grain, natural gas and denaturing chemicals for the plant, and will market the distillers grains produce by ethanol production. Tenaska will also receive up to 3.5% on all fuel ethanol sales.

Industrial Info is currently tracking seven energy-related projects that involve Tenaska in the U.S., representing more than $6.2 billion in capital and maintenance spending.

Industrial Info's databases provide a comprehensive outline of all current development activities in the emerging alternative fuels market. Our North American Biodiesel Database covers 136 operational plants and 90 plants under development. Our North American Ethanol Database covers 214 plants currently in operation and 138 plants under various development phases. Our North American Wood Fuel Pellet Database includes 63 operational plants producing greater than 25,000 tons annually, and 38 projects under progress.

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