Agriculture
Last Update: 7/18/2008 6:19:32 PM CST

Water allocation sought for second ethanol plant near Madrid


    By Russ Pankonin
    The Imperial Republican
     Board members of the Upper Republican Natural Resource District heard a request last week for a water allocation for a second ethanol plant near Madrid.
     Bob Lundeen, chief executive officer for Mid-American/Agri Products/Wheatland, LLC, said this week they are seeking an allocation for a 110-million gallon ethanol plant.
     He said the plant would be located about 1.5 to two miles east of the company's 40-million gallon plant now under construction on the edge of Madrid. That plant is slated to begin ethanol production June 1.
     Mid-America/Agri Products is also constructing a 40-million gallon plant in Cambridge that will begin production in November.
     Lundeen said they have already begun the permitting process for the second plant and have acquired the land for the plant location.
     Site preparation work has begun and they hope to begin construction on the second plant by mid-June, utilizing the same crews working on their first plant.
     Larry Hurley, chief operating officer for the company, addressed the NRD board during the April 1 meeting.
     Hurley said they have purchase options on three circles of irrigated land. The allocation from this land will be used to offset part of the allocation being requested.
     The NRD board recently granted allocation requests for proposed ethanol plants in Wauneta and Imperial. The board required a 50 percent offset of those allocations requested. Hydrological impact studies were also required.
    Another request pending
     Terry Svejda, managing partner with Devron Renewable Energies, based in Blair, made a presentation to the board on an expected request for a water allocation for another ethanol plant near Imperial.
     He said his company has delayed making a formal allocation request until it completes plant design.
     He indicated his company has options on three different locations for a plant as well as 390 acres of irrigated property to use for offset.
     He said their Imperial plant is one of 10 planned for a four-state area.
     Their initial plans call for a 100-million gallon plant with the expectation of expanding to a 200-million gallon facility.
     He said a formal allocation request could be ready in 30 days.