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Construction of ethanol plant to begin soon
The recent completion of financial arrangements will allow construction at the S.W. Energy LLC ethanol plant near the Perry elevator between McCook and Culbertson to begin immediately.
SWE president Al Voudrie of Elk River, Minn., said Wednesday he is very pleased that financial arrangements with Allco Finance Group Limited do not require that existing members be reduced to a minority vote in the project that will expand the existing research and development facility into a full-scale ethanol plant that will initially produce 46 million gallons of motor fuel grade ethanol a year.
Construction is expected to begin this spring, with completion a year from now.
Expansion capabilities will be built into the plant, SWE director Steve Lipetzky told Red Willow County commissioners Monday, with the company's sights set on eventually increasing production to 120 million gallons a year. At that point, the plant could create 45 direct local jobs and 150 indirectly-related local jobs.
Rex Nelson, executive director of the McCook Economic Development Corp., said Wednesday afternoon he is very excited about SWE's news to start construction at the Perry plant. "People have no idea how strong an economic engine an ethanol plant can be," Nelson said
Nelson said that while agricultural commodity prices aren't all that strong, ethanol plants like the one east of Trenton are having an impact. If the ethanol plants weren't out there, commodity prices would be lower, he said.
The MEDC helped provide some of the early funding that helped bring ethanol plants online, Nelson said, and has been involved in one way or the other in the years since.
Ron Friehe of McCook, an early shareholder in the Perry project, is excited about the agricultural and economic development opportunities that the ethanol plant at Perry will create.
Although Friehe said this morning that he, Van Korell and John Kugler, other early shareholders, are no longer involved with the SWE project, he sees it as "a win-win situation."
"It's a great value-added agricultural and environmental product," Friehe said. "The plant's going to be really good for the area."
Voudrie said that the signing of the financial agreement with Allco sends a message that "you just need a capital partner that is willing to work side-by-side with local owners and farmers, as opposed to taking over." He continued, "Allco's philosophy is the same as ours -- encouraging instead of discouraging participation and investment, so that a good deal of the rewards can be reaped right here in the (McCook) community."
Tom Melone, president of Allco, said that Allco's view is that the farmers and other local participants are essential partners and do not need to, nor should they, give up control of their destinies in order to raise additional capital.
Melone said, "We strongly believe in the American vision for ethanol. American farmers and their local communities are the backbone of the ethanol industry and of the future of America's renewable fuels. We are pleased that we have created a model that ensures that local owners and farmers never lose control of their destiny."
Melone said the SWE plant is also a model of sustainability for ethanol plants. "With a combination of solar, wind and biomass, the SWE plant can be fully powered with no fossil fuels, which would really fulfill the promise of biofuels," he said.
Melone said that Allco is also pleased to be able to bring to the American farm community the benefits of many of the renewable energy tax incentives enacted last year through the leading efforts of U.S. Senator Chuck Grassley (Rep.) of Iowa.
About SWE
S.W. Energy LLC was organized in February of 2004 by founding members in Nebraska and Minnesota, to develop a fuel grade ethanol facility.
McCook was chosen as the site for the project because of the area's combination of excellent proximity to corn supplies and to the users of the agricultural cattle-feed byproducts produced by ethanol plants; as well as the infrastructure and state and local economic incentives.
Voudrie said, "The SWE facility will have a positive economic effect on the entire community due to the increased value of corn and the creation of 45 permanent direct jobs with an annual payroll of approximately $2 million."
He concluded, "By remaining American-owned, SWE will remain eligible for USDA grants."
About Allco
Allco Financial Group Limited is a New York-based investment banking firm with an Australian history, but which is now 100 percent U.S.-owned and controlled.
Through its U.S. operation, Allco has arranged financing for more than $27 million of infrastructure and other assets.
Allco is actively developing, investing in and arranging financing for ethanol and other renewable-energy projects throughout the U.S., including the SWE plant at Perry and other similar plants in Pennsylvania and California.
Allco has also partnered with major firms in the solar, wind and biomass industries in order to advance these added benefits.