Ethanol plant having a gas
MILTON — United Ethanol investors gathered two weeks ago among alarming developments in the ethanol industry:
-- Falling gas prices and a nationwide recession have reduced ethanol demand.
-- The state's largest ethanol plant, Renew Energy in Jefferson, has filed for bankruptcy.
-- Plans for at least six ethanol plants, including one touted by former Gov. Tommy Thompson, have been put on hold.
But United Ethanol is staying afloat by increasing efficiency and finding new sources of revenue, plant officials said.
The plant produced 40.9 million gallons of ethanol in 2008, close to its original capacity of 42 million gallons, according to a news release following the plant's second annual meeting held March 2.
The capacity was raised to 55 million gallons after installation of a new regenerative thermal oxidizer in fall, but the plant is aiming to produce 40 million or more gallons in 2009, President and CEO David Cramer said.
Randy Fortenbery, UW-Madison professor of agribusiness, estimated the average Wisconsin ethanol plant is losing 8 to 10 cents per gallon produced. Plants that contracted for corn at fixed prices last summer, when corn prices were high, probably are doing worse, he said.
United Ethanol is not buying corn months in advance and so isn't under the same squeeze as some plants, spokeswoman Dori Lichty said.
Smart business decisions have kept the plant profitable as other plants falter, said board member Bob Weiland, Menomonee Falls.
The plant will increase its fermentation time, producing more alcohol per bushel, Cramer said. It also will try to shorten the time it takes to acquire corn and ship ethanol after it's been produced. It has restructured its management structure, eliminating a few positions, he said.
Officials announced a new revenue source at the annual meeting. GS Clean Tech, Chicago, Ill., will begin building a corn oil extraction unit on the site in early summer. It plans to extract 1.6 million gallons of corn oil a year for biodiesel production, according to the news release.
The plant already sells carbon dioxide and wet and dry distiller's grain, byproducts of ethanol production.
Milton city staff will work with the plant to determine if any permits or approvals are necessary for the extraction unit, City Administrator Todd Schmidt said.
The city agreed to pay $811,000 plus interest in tax incremental financing money to the plant between 2008 and 2020. The agreement is linked the plant's guarantee to reach $15 million in property value, Schmidt said.
In 2008, the plant was assessed at $10.7 million, so the city reduced the amount it owes to the plant instead of making a payment. The plant was assessed at $16.9 million for 2009, Schmidt said.
Weiland said the plant turned a small profit in 2008. It would have been more if the plant hadn't spent $2 million on a larger regenerative thermal oxidizer to replace an inadequate one, he said.
Weiland said he's satisfied with the plant's operation, especially compared to other investments he made or could have made in recent years.
"Matter of fact, I wish I had invested more in it," he said.
Mar 27, 2009 at 7:54 p.m.
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If ethanol made so much sense, we wouldn't have to subsidize it with tens of billions of dollars every year, or mandate its consumption with the government putting a gun to the American Taxpayer's head.
Listen to this whole video:
http://www.youtube.com/watch?v=j9QQcP_Y1...
Here is a correction you supporters need to start using:
12.5 billion gallons of capacity of the US ethanol industry as of 01/01/2009.
25% of capacity idled due to incompetence as billions of dollars a year in American Taxpayer subsidies isn't enough to support this scam on the American people as of 01/01/2009.
Thus only 9.4 billion gallons of capacity remains.
BUT, AND THIS IS VERY IMPORTANT TO YOU ETHANOL SCAMMERS:
We need to deduct AT LEAST 32% because of the reduced fuel mileage of ethanol compared to real gas. (but the 32% reflects e-85 and using 100% ethanol, as the 9.4 shows, would make it closer to 40%)
Thus, only 5 to 6 billion gallons of ACTUAL ethanol is being produced this year, so stop trying to Inflate and Exaggerate the actual effect and real number that is subsidized by the American Taxpayer and its consumption Mandated with the government putting a gun to the American Taxpayer's head.
http://www.fuelgaugereport.com/index.asp...
http://www.ethanolrfa.org/industry/stati...
And, let’s be honest, The beginning number of 12.5 is probably whack information, as for example,
(1) bankrupt Renew Energy of Jefferson, Wisconsin claims to be the biofuels industry leader for innovation and efficiency...yet they are bankrupt. Whack
(2) bankrupt Renew Energy until this week claimed on their website and to their bank (owed $140 million with interest), The Town of Aztalan owed $38 million in taxpayer supported revenue bonds), investors, customers, venders, and even the government that they had the capacity of 130 million gallons per year.
BUT
in the court documents filed by bankrupt Renew Energy in federal court, Renew Energy UNDER OATH claims ONLY 110 million gallons of capacity per year:
http://www.thenorthwestern.com/assets/pd...
and
http://www.thenorthwestern.com/assets/pd...
What a sneaky little lie to obtain extra undeserved financing from not only its bank and taxpayer funded subsidies (revenue bonds). Sneaky too how Renew Energy took all reference to this "huge bolded lying statement of 130 million gallons" off its home page.
I am sure 20 million gallons of fake capacity a year adds fraudulently to the bottom line of the lying documents Renew Energy supplied to everyone in this clear example of yet another scam within the Ethanol Scam itself.
http://www.energytribune.com/articles.cf...
Mar 18, 2009 at 7:41 a.m.
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...and the plant is stinkey, too.
Mar 18, 2009 at 2:48 a.m.
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witchy woman.... how about that lovely orange dust that falls all around Milton and surrounding areas we like to call 'cheeto dust'. Hope it isn't toxic because it has been found all the way into Janesville as far as blackbridge rd.
Mar 17, 2009 at 7:32 p.m.
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farmdude, thank you for enlightening me about the soy crops grown in '09 at corn's expense, for that was one thing that I was unaware of... that may explain as to my views on hunger (dairy products and meat) being a bit skewed... I only meant well by my thoughts, and yes, I have a high level of appreciation to the farming community... I know their work is far from easy, and that is something, unfortunately, that many people overlook or take for granted...
Mar 17, 2009 at 8:32 a.m.
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armyof3 - Your appreciation for farmers is admirable, but your take on people "going hungry" and ethanol's role is a little skewed. The reality is, more soybeans are expected to be grown in 2009, at corn's expense.
Also, livestock farmers are struggling right now because of the low prices they are receiving for their meat and milk....not because of corn (which is being sold for half what it was on July 4, 2008).
Mar 17, 2009 at 5:21 a.m.
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Ah yes, the new American tradition… While some line their pockets with profit, others suffer the consequences... Just ask the adjacent property owners what a "gas" it is to live in the shadow of this foul place.
WW
Mar 16, 2009 at 10:44 p.m.
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The sooner that plant shuts down the better.
Since that plant started up, it's never quiet in Milton anymore. Just a continuous roar from the east.
If we burned that enormous amount of natural gas the plant consumes in our vehicles directly, we could skip the conversion process and it's losses, and recoup the corn for feed.
Maybe the trains blasting their horns all night would go away too.
Win, win, win...
Mar 16, 2009 at 10:02 p.m.
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iLIKEturtles that was a little bit of humor .
Mar 16, 2009 at 7:48 p.m.
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bad enough that they struggle every year that there's flooding due to a large number of the crops that they plant get either washed away or drowned by the water....
Mar 16, 2009 at 7:46 p.m.
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iLIKEturtles, I'm aware of what type of corn it is, but seeing how farmers are struggling moreso now because of feed corn being harvested for ethanol, they're having a harder time feeding their livestock, thus making things more difficult for them to provide a variety of food (i.e. milk/dairy, beef, pork, lamb, chicken) to people that are going hungry in opposition to providing a fuel to 'green' vehicles, which many people are unable to afford because of the economic decline...
Mar 16, 2009 at 7:26 p.m.
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iLIKEturtles i really don't care to hear that ,can the damn stuff be turned into whiskey ?
Mar 16, 2009 at 6:40 p.m.
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snarly If that could be done are debt would be 0 in one year .
Mar 16, 2009 at 6:25 p.m.
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former Gov. Tommy Thompson, I sure do like the sound of that,--former Gov. Tommy Thompson,
Mar 16, 2009 at 6:15 p.m.
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If anyone has ever wondered what the effects would be to one who imbibes ethanol, please refer to the first comment.
Mar 16, 2009 at 5:54 p.m.
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take the corn that's being produced for ethanol and put it back to it's original use--feeding the livestock...
Mar 16, 2009 at 2:44 p.m.
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somebody has been into the white lightenin' themselves, hey.
Mar 16, 2009 at 2:05 p.m.
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Snarly- Care to translate?
Mar 16, 2009 at 9:06 a.m.
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Hay Idea turn the plant in to a moonshine opperation and sell moon shine like jake danials and taxs it like cig's
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