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Missouri sees decline in ethanol plant applications

Thursday, December 13, 2007

Missouri has seen a slowdown in applications for construction of ethanol plants in recent months.

But plants that already have applications pending or approved are continuing the process of establishing their operations, said Kyra Moore, permits section chief for the Air Pollution Control Program in the Missouri Department of Natural Resources.

"We are not getting new applications in, but we are still proceeding with the new applications we have," said Moore.

The last ethanol permit application received by DNR was a revised permit application from a Rogersville, Mo., company in July, according to the list of proposed and existing ethanol plants on DNR's Web site, revised Nov. 20.

Several media outlets have reported a downward trend in the run to build ethanol plants.

The DNR has received applications for four plants in the Southeast Missouri area, but so far none of those plants has entered the construction phase. Construction permits have been approved for three of those plants -- Bootheel Agri-Energy LLC in Sikeston, Mo., Renewable Power of Missouri and Ethanex in Cape Girardeau. A permit for another plant, First Missouri Energy in Scott City, is still pending.

Time is running out for the next move to be made with Bootheel Agri-Energy. Ed Dust, director of the Sikeston Department of Economic Development, said an option on a plant site in Sikeston is set to expire Feb. 22.

Dust didn't comment on whether or not the company plans to exercise the option before the deadline, but said he's not worried about the plant's future yet.

"I'm the biggest optimist in the world, and until the twenty-second of February, I presume it's going to happen," Dust said.

Chaffee, Mo., farmer David Herbst is president of the board of directors. Herbst has said investors and company directors won't talk to the media for fear of running afoul of disclosure rules laid out by the federal Securities and Exchange Commission.


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Could it be that this decline in applications is due to approaching a limit with current corn production for the plants currently in operation or on the drawing boards?

Freight is expensive, good idea to locate the plants right in the middle of the supply.

Assume 1 bushel corn yields 2.5 gallons ethanol, average plant size is 75 million gallons ethanol per year, average corn yield is 150 bushels per acre.

If the assumptions are reasonable and the math is right, each plant would require 200,000 acres, or about 300 square miles of corn field.

Attached are links showing Missouri corn production, farmer-owned ethanol plants, and plant permit status from the DNR.

http://www.mocorn.org/cornethanolmap.pdf

http://www.dnr.mo.gov/ethanol/airpermits...

-- Posted by fxpwt on Thu, Dec 13, 2007, at 5:43 PM


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