Ring-Neck Energy & Feed, LLC officially organized as a South Dakota Limited Liability Company on September 12, 2014, with the intention of planning, developing, financing, constructing, owning and operating a 70 million gallon per year dry mill fuel manufacturing plant near Onida, South Dakota utilizing 25 million bushels of corn. Our principal products will be ethanol, distillers grains and corn oil. We intend to use professional third-party marketers to sell our ethanol to wholesale blenders that will, in turn, sell the blended unleaded gasoline to retailers. We expect to be reliant on both domestic and foreign ethanol sales. Distillers grains are a livestock feed that can be sold wet, modified wet, or dry. We anticipate producing approximately 212,500 tons of distillers grains annually. We intend to use third-party marketers to sell our distillers grains to local and distant livestock producers. We similarly intend to use third-party marketers to sell our non-food grade corn oil for industrial purposes including biodiesel manufacturing. We anticipate producing 12.5 million pounds of corn oil annually.
The plant is anticipated to be a dry mill corn-processing ethanol plant utilizing natural gas-fired boilers. Number 2 yellow corn will be our primary input along with natural gas. Although we believe that there are adequate corn supplies produced in the vicinity of our anticipated plant site, weather, other consumers, and other market forces will have an important influence over the local supply and price of corn. The plant will have goals to maximize the return to the equity owners and provide economic development to the local community.
We are a start-up development stage company that has yet to commence operations or generate revenues. We intend to develop, own and operate a 70 million gallon per year dry mill fuel ethanol manufacturing facility near Onida, South Dakota. We anticipate that our primary line of business will be the production and sale of fuel ethanol and its co-products. We estimate that the total cost of the project will be approximately $140 million. We are currently in the general equity stage to raise funds to provide a deposit to our anticipated design-build contractor, Fagen, Inc. (“Fagen”), acquire real estate, pay surveying, engineering, meeting expenses, professional fees, permitting, surveying, preliminary site work, feasibility studies, and other organizational, start-up, and development costs, and expenses associated with our subsequent general equity offering. In order to fully capitalize the project, we will conduct a subsequent general equity offering of approximately $74 million, with the balance of the funds required for the project supplied by senior debt financing.