Yellow Medicine County and the City of Granite Falls Have No Qualms About Ethanol Plant Expansion

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Researched by Industrial Info Resources (Sugar Land, Texas)--Investor-owned ethanol venture Granite Falls Energy LLC (Granite Falls, Minnesota) has received no red flags from the county, city or citizens about the company expanding production capacity at its corn-based fuel ethanol plant in Granite Falls.

Although the public comment period remains open until January 26, the Minnesota Pollution Control Agency says no concerns about the expansion project were voiced by citizens attending a public hearing on January 10. Granite Falls Mayor Dave Smiglewski also expressed support for the project, as it will add jobs to the local economy.

The company plans to increase capacity by 40%, from 50 million gallons per year to 70 million gallons per year. The project will be broken up into two phases. The first phase will add another 10 million gallons of capacity, followed by another 10 million-gallon-per-year increase later this year. The expansion will increase the amount of corn moving through the plant from 540,000 tons per year to 750,000 tons per year. The plant's water usage will also increase. The plant currently uses 150 million gallons per year of water from the Minnesota River.

The company is currently working on detailed design for the project, and the first phase is expected to begin construction in April or May this year, followed by the second phase in late 2011 or early 2012, depending on market conditions.

Costs to implement the expansion are in the $25 million range. The plant originally began production in mid-2006 and was designed and built by Fagen Incorporated (Granite Falls).

Industrial Info's Databases provide a comprehensive outline of all current development activities in the emerging alternative fuels market. Industrial Info's North American Ethanol Database covers 203 plants in operation and 358 plants under various development phases. Industrial Info's North American Biodiesel Database covers 153 operational plants and 72 plants under development. Industrial Info's North American Wood Fuel Pellet Database includes 59 operational plants producing greater than 25,000 tons annually, and 37 projects under way.

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