2017-09-25 03:22:59 EDT
Ringneck Energy has begun construction on a South Dakota ethanol plant that will have an initial annual capacity of 80 million gal, CEO Walt Wendland said Monday.
“We are continuing to do some of the finishing up on the elevations for the buildings and getting final engineering done for those now,” Wendland told OPIS of the work that began last month. “Things are going ahead.”
“We had our bank closing two weeks ago, so everything is in place,” he said, adding that the company expects the plant to be finished by November 2018, weather permitting.
“We are hoping for the best when it comes to the winter, Wendland said. “We generally don’t get a lot of snow out here, so it might not be too bad.
“We are trying to get as much cement in the ground as we can before the end of the year,” he added.
The plant’s price tag is approximately $150 million.
The company has said that it plans to expand the plant eventually to 100 million gal, but Wendland said the exact time of that is undetermined.
“It looks like I am going to have to let economics kind of decide when that happens,” he said.
In the meantime, crews have completed nearly all rail construction at the site, according to the company, and an agreement has been reached with the Sully County Rail Authority for a $3.55 million loan for extension of rail to Ringneck’s site.
Initially, it said, it anticipates annual production of approximately 212,500 tons of distiller’s grains and 12.5 million pounds of corn oil.
The plant will create demand for 25 million bu of corn annually, according to the company, with the potential to grind up to 35 million bu. The facility will draw corn from a 13-county region in the state.
Investors include about 175 individuals and businesses in nine states, most in the Midwest corn belt, Ringneck said, “as well as a strong list of industry partners and major investors,” including Granite Falls Energy, Lake Area Corn Processors (dba Dakota Ethanol), Chippewa Valley Ethanol Cooperative, Sukup Manufacturing, ICM, Oahe Grain Corp. and the South Dakota Corn Growers Association.
Plans call for 40 full-time employees.
–Michael Schneider, firstname.lastname@example.org
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