Ground broken for new ethanol plant

By RON LARSEN

Journal Staff Writer

LAKE CRYSTAL -- Ground was broken Friday for the state's latest entry in the national ethanol-production sweepstakes, Broin Companies' Northstar Ethanol plant, which will be built on 100 acres of prime corn ground less than 2 miles west of here.

For Broin, which has its roots in corn country near Kenyon but headquarters now in Sioux Falls, S.D., it will be its seventh plant in Minnesota and will bring the number of ethanol plants in its stable to 21.

"Currently, the 14 plants (in production) produce over 600 million gallons of ethanol annually, making Broin the second largest in the country. With the five plants being added, we will be producing over 700 million gallons annually," CEO Jeff Broin told those who gathered for the indoor, pre-groundbreaking celebration at the Lake Crystal Area Recreation Center.

"It will have an annual capacity of 49.5 million gallons of ethanol produced from 17.5 million bushels of corn. It will produce 150,000 tons of distillers dried grains with solubles annually. It will employ 40 with an annual payroll of about $1.5 million," Broin added.

The plant will cost about $64 million to build, and it will be a year in construction, Broin said. Mathiowetz Construction Company of rural Sleepy Eye is the general contractor.

"The process started well over a year ago and with the help of the (Blue Earth) county, state and JOBZ (Job Opportunity Building Zones), we're finally ready to put a spade in the ground," Lake Crystal Mayor Brad Ahrenstorff said.

Broin said the political climate for ethanol in Minnesota is "favorable as the JOBZ program stimulated our interest in Minnesota." Not only does this area and Minnesota benefit but "the nation benefits when we produce energy at home."

"It's a "win-win for us, not just once but five times over," Gov. Tim Pawlenty told the gathering.

"It's a win for Minnesota agriculture; it's also a great example of value-added agriculture," Pawlenty explained.

It's also a win for rural economic development, the environment, the country's foreign policy in diversifying energy sources and for state environmental policy, he continued.

"I'm so very impressed with the state of Minnesota in the way you're moving ethanol down the road. Minnesota is unique in leading in ethanol use for so many years. Every gallon of gasoline in this state is blended with ethanol; no other state can say that," said Brian Jennings, representing the American Coalition for Ethanol.

At the groundbreaking that followed at the plant site, Broin said the plant with its 900,000 bushels of corn storage, 4,000 tons of DDGS storage and 4 million gallon ethanol storage would cover about 50 acres.

"The rest will hold retention ponds and the like, and some of it may be rented out."

Ron Larsen can be reached at rlarsen@nujournal.com.