Cambridge plant qualifies

CAMBRIDGE -- The new "Horizon Renewable Energy" pilot ethanol plant in Cambridge pumped more than 11,000 gallons of ethanol in May and June to prove itself eligible for state production incentives by the June 30 deadline.

New ethanol plants across the state have until the end of this month to demonstrate production capabilities at a rate equal to projected annual production to qualify for state incentives.

The Cambridge Clarion newspaper reports that R&C Petroleum of North Platte purchased the fuel-grade ethanol that Horizon produced between May 27 (when the production demonstration started) and June 10 (when the demonstration ended).

The Clarion indicates the plant will now be shut down and upgrades will be completed by mid-August. Construction of the main facility will begin later this year, according to the Clarion.

To meet the state's June 30 deadline, some investors have constructed small-scale "pilot plants" (such as Horizon plant at Cambridge and the SW Energy plant west of McCook at the Perry Elevator site), with plans to expand and/or construct full-scale facilities after the June 30 deadline.

The maximum incentive per plant could be $22.5 million, which may be paid over eight years. To qualify for this amount, a plant would have to produce more than 18 million gallons of ethanol annually.