The Hancock-Henderson Quill, Inc.
Big River Resources announced its decision Wednesday afternoon to build a $55 million ethanol plant in Des Moines County.
The site, west of West Burlington, is between 150th and 155th Streets just north of the BNSF main line and south of the new US 34 freeway right-of-way. In a news conference at Southeastern Community College, officers of the investor-owned cooperative said the plant, to be built by Fagen, Inc., will initially employ about 32 people and will use 15 million bushels of corn to produce 40 million gallons of ethanol a year.
"Planning for this facility has been ongoing for well over 18 months," said Big River Co-Chair Ray Defenbaugh. "Our Board of Directors considered several locations very thoughtfully to insure that the final choice would optimize operations and profitability for investors."
Four other sites considered were at the Iowa Army Ammunition Plant at Middletown, near the Alliant Energy generating plant south of Burlington, a site near Wever, IA in Lee County, and a location close to Gladstone.
Elaborating on the site selection process, Co-Chair Andy Brader said Big River "considered many factors. We want excellent highway and rail access, adequate water and electric power, relatively flat terrain, natural gas availability, and convenience for the producer-investors who will be supplying corn to the facility. Finally, we evaluated state and local incentives."
The co-op eventually narrowed its choices to two, including the Illinois site.
Defenbaugh said "both were good locations for an ethanol plant. In the final analysis, the Des Moines County site offered some location and cost advantages."
Co-chairs complimented local economic development and elected leaders, state officials and utility representatives in both Iowa and Illinois for their effort to bring the project to reality.
Speaking for Grow Greater Burlington, the private nonprofit agency which provided development data and helped Big River coordinate and negotiate with local and state officials, Vice President of Economic Development Dennis Hinkle said, "we are extremely pleased that Big River Resources has selected Des Moines County as the location."
He said the plant in central Des Moines County "will be of real benefit to regional corn producers and many other businesses in the region will benefit as the dollars circulate.
It is our belief that this facility will lead to other economic development investments in the future."
Plant construction, assuming successful completion of fund-raising, is scheduled to start next fall and will take about a year. The plant will be designed for expansion to an 80 million gallon capacity. "We plan to begin processing corn into ethanol in the fall of 2003," Brader said.
The Board of Big River Resources Cooperative in announcing the final site selection would like to remind potential investors that the initial stock offering price will increase 10% after April 15th. Details on investing or to obtain an offering circular should contact the Big River Resources Cooperative at 309-734-1789 or one of the following Co-Chairmen - Andy Brader, Mediapolis, IA at 319-394-3825 or Ray Defenbaugh, Biggsville at 309-768-2295.