Penford Products Nears Completion of Iowa Fuel Ethanol Plant

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Researched by Industrial Info Resources (Sugar Land, Texas)--Penford Products Company (Cedar Rapids, Iowa), a subsidiary of Penford Corporation (NASDAQ:PENX) , is nearing completion of an ethanol plant addition at its corn-milling and industrial-corn-starches plant in Cedar Rapids.

Construction on the estimated $42 million plant began in November 2006. The plant is going through the commissioning process and is expected to be fully operational during the month of May. The plant will produce 45 million gallons of ethanol annually but reduce the amount of starch generated at the plant.

The plant is situated within the operation's existing boundaries on the north end of the property and utilizes Vogelbusch (Katy, Texas) licensed ethanol process technology.

Penford decided to diversify into the ethanol market ever since the company's core products for starch that went into the paper market began to decline. The site had good corn handling infrastructure in place with grain handling and separating, rail transportation and existing utilities and allowed the company to enter the ethanol market with a plant that cost 30% less than the new grassroot plants being built in the State.

Industrial Info's Ethanol Database provides a comprehensive outline of all current development activities in the emerging alternative fuels market. This database covers 147 ethanol plants in operation and 530 plants under development. It also covers 98 operational biodiesel plants and 245 biodiesel plants under development.

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