Two New Ethanol Plants Under Construction in Michigan

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Researched by Industrialinfo.com (Industrial Information Resources, Incorporated; Houston, Texas). Recently, two new fuel ethanol plants began pre-construction activity in Southern Michigan. U.S. BioEnergy Corporation (Brookings, South Dakota) and Albion Ethanol LLC (Albion, Michigan) are both constructing ethanol plants in Michigan and both will utilize the same ethanol technology design company. The two plants will add a total of 100 million gallons annually to the growing fuel ethanol industry.

U.S. BioEnergy is building a 45 million gallons per year plant in Lake Odessa, Michigan, at a cost of $58 million. The project is scheduled to be operational in time for the 2006 corn-harvesting season. The plant will chew up sixteen million bushels of locally grown corn and create 40 new jobs for the area.

Just 40 miles away, Albion Ethanol, together with partner The Anderson’s, are building a 55 million gallons per year plant at a cost of $86 million on the site of an existing grain terminal in Albion. The new plant will create about 30 new jobs when it comes online in September of 2006.

Both plant developers selected ICM, Incorporated (Colwich, Kansas) to provide the licensed ethanol process technology. Fagen, Incorporated (Granite Falls, Minnesota) will construct the 45 million gallons per year plant for U.S. BioEnergy. Albion will act as its own general contractor for its plant, hiring construction subcontractors.

Once both projects are complete, the state will be home to four ethanol plants. In October of 2002, Michigan Ethanol completed construction on a 40 million gallons per year plant in Caro and Great Lakes Ethanol LLC began construction on a 40 million gallons per year plant near Riga. The four plants will have a combined production capacity of 180 million gallons annually. One other project in the state, Marysville Ethanol LLC is expected to get underway sometime in the near future and is expected to add another 40 million gallons per year of production.

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