Vision Fuels' Third Chance for an Iowa Ethanol Plant Fall Through Because of Wall Street Woes

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Researched by Industrial Info Resources (Sugar Land, Texas)--Ethanol start-up Vision Fuels LLC's (Urbandale, Iowa) third chance of building a fuel ethanol plant were scrubbed as the woes on Wall Street and credit difficulties killed the company's hopes of raising the capital it needed to build its plant that was to be located in Des Moines, Iowa.

In July of this year (see July 11, 2008, article - Vision Fuels Scrubs Plans for Two Additional Iowa Ethanol Plants), Industrial Info reported the company had cancelled plans to build plants in the cities of Boone and Liscomb, Iowa, and was concentrating on a single site for a 110 million-gallon-per-year plant in Des Moines. Dan Cornielson, President of Vision Fuels, said, "The turmoil in national financial markets had a significant impact on our ability to get capital," ultimately killing the project that had been two years in the making.

The company had already paid the city of Des Moines a $948,000 deposit on 164-acres of land owned by the city. Vision Fuels was to be the cornerstone of the new Agrimergent Technology Park and will now lose their deposit. With the loss of the plant, the city is reevaluating plans for the agribusiness development.

Vision Fuels had selected Praj Industries (Pune, India) to provide the licensed ethanol process technology for the Des Moines project and the Ryan Companies U.S. (Minneapolis, Minnesota) as their turn-key engineering, procurement and construction contractor for the estimated $247 million project.

Industrial Info's http://www.industrialinfo.com/prodserv/prodserv.jsp?pagerequest=ethanol&tab=A Ethanol Database provides a comprehensive outline of all current development activities in the emerging alternative fuels market. This database covers 156 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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Industrial Info Resources (IIR) is a marketing information service specializing in industrial process, energy and financial related markets with products and services ranging from industry news, analytics, forecasting, plant and project databases, as well as multimedia services.