Rush is on for ethanol production

The rush is on in Southwest Nebraska to meet the June 30 deadline for ethanol production. One plant -- Trenton Agri Products LLC -- is already a sure thing. The multi-million dollar plant is taking shape two miles east of Trenton, overlooking the Republican River Valley. Within weeks of completion, the plant will be fully operational in plenty of time to comply with the state deadline for incentive payments.

But three other area ethanol projects still have a long way to go to be in compliance. In an attempt to meet the June 30 deadline for producing 9,000 gallons of ethanol, the proposed plants in Moorefield, Madrid and Perry are all planning to install pilot plants.

According to an article in the March 4th Hi-Line Enterprise in Curtis, "These pilot plants can be used as stand alone components or they can be used as the core component of a larger ethanol plant built around them at a later date. Alone, the pilot plants can produce 100,000 gallons of low quality ethanol per year."

Six months ago, there was not much hope for the area ethanol plant projects to qualify for state incentive funding. But then the pilot plant strategy emerged, giving the proposed plants renewed hope.

Since then, knowing that state incentives still might be possible, Lundeen Incorporated of North Platte has been pushing hard for the ethanol plants near Madrid in Perkins County and near Moorefield in Frontier County. At the same time, Southwest Biofuels has stepped up the pace in efforts to create an ethanol plant near Perry in Red Willow County. Located only four miles west of McCook, the Perry plant project has been helped in recent weeks by an infusion of investments from both McCook and the Elk River area in Minnesota.

Will the rush to production be successful? Formidable challenges will have to be faced, but -- according to the guidelines set by the Nebraska Legislature -- the payoff in the form of incentive funds is still possible.

Still, there is considerable risk for the investors. First, they have to gamble that ethanol incentives will be fully funded by the legislature. And, then, investors will have to be able to attract the financing necessary to build much larger plants, with eventual costs reaching $40 million or above.

In the push to develop a pilot plant, the plant near Moorefield, known as Horizon Renewable Energy LLC, is seeking clearance from Frontier County and Natural Resource District officials. Plant proponents will meet with the Middle Republican NRD in McCook Tuesday to seek a well variance, and will meet with the Frontier County Board of Commissioners Thursday to request rezoning of the proposed ethanol plant site from agricultural to industrial.

So much to do. So little time. As Southwest Nebraska strives to expand its economic horizons, the next few weeks will be critical. Only 114 days remain to comply with the 9,000-gallon production deadline. Is that enough time? We'll know in 16 weeks.