Move forward with ethanol production

Ethanol development is a win-win situation, not only for the grain producers of Southwest Nebraska and Northwest Kansas, but for the state and nation as a whole.

That's the belief of Ron Friehe, John Kugler and Van Korell, the McCook men who are serving as directors of the newly formed SW Energy LLC. In an interview Monday with the Gazette publisher, the men said Nebraska has a short window of opportunity for ethanol development, and the state needs to act quickly to solidify Nebraska's role as a national leader in production.

While the SW Energy directors were speaking out, the first phase of the company's ethanol plant project was getting under way three miles west of McCook near the Perry elevator. "They're turning dirt," Kugler said Monday, "and will be putting down the concrete slab by mid-week." That work will provide the foundation for the Phase One project, which will become a permanent part of the ethanol plant development.

Completion of Phase One will come quickly, Kugler said. "We have 12 pallets of pumps ready for installation," he declared. The components will be put in place within the next month, with production beginning by mid-May.

Action by then will qualify the Perry plant for state ethanol incentives, plus put the project on the path to receive LB 775 funding.

"There have been blatant attempts to belittle the plants," Friehe said, "but we are choosing to remain positive." While some are attempting to paint the ethanol plants as a drain on state funds, Friehe said that's not the case. "The majority of the money for ethanol development is coming from the corn checkoff, with a smaller portion coming from fuel taxes."

Looking at ethanol from a national perspective, Korell said it makes a lot of sense. First, because of rising gasoline prices, there is a greatly increasing demand for the alcohol blend provided by ethanol. As a result, "a significant number of ethanol plants are going to be built, and that provides a rare, but short, window of opportunity for rural Nebraska."

Rural areas need the jobs, they need the grain market improvement and they need projects to qualify for the economic development funds available through LB 775. In past years, the 775 funds have gone mainly to Nebraska's three most populated counties, while outstate areas have come up nearly empty-handed.

"It takes 48 permits to put an ethanol plant in operation, and we have complied with all the rules," the SW Energy directors said. "Two attorney general's opinions have upheld our approach. There is lots of demand for ethanol, there is plenty of grain in this area and a number of people are looking for good jobs. All and all, it's a great time for Nebraska to move forward with ethanol production."