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Posted on  

March 12, 2003

Lexington to be home to new ethanol plant

Cornhusker Energy Lexington LLC will begin construction on a ethanol plant near Lexington that has the capacity to produce 40 million gallons per year.

“We are pleased to announce that we have a site under control near Lexington,” said Tydd Rohrbough, president, Cornhusker Energy Lexington, LLC. “We believe the proposed site, located on the western edge of the Corn Belt, is well positioned for the California, Front Range, and Southwest US ethanol markets."

“We are particularly interested in the California market,” said Rohrbough. “A recent report from the General Accounting Office indicated that ethanol consumption for California alone is estimated to grow to 890 million gallons per year sometime after 2005, given the proposed ban on MTBE.”

The typical level of investment for a 40 million gallon facility is about $50 million. In addition, a plant of this size generally employs 30 or more individuals, has an annual payroll exceeding $1 million, and processes about 15 million bushels of corn annually.

Joe Pepplitsch, Lexington city manager, applauded Cornhusker Energy’s decision and referenced a recent analysis provided by the Nebraska Public Power District outlining the potential economic benefits an ethanol facility might have on a community, such as Lexington. He also cited the state’s 2000 Target Industry Study, which identified the alternative fuels industry as one of its targets, in part, because of the industry’s high growth potential, investment level, wealth generation and payroll.

To be eligible for the ethanol production credits, the facility must be in production prior to June 30, 2004. Cornhusker Energy also plans to produce and market both wet and dried distillers grains, primarily to local cattle feeders. The project remains contingent on a number of factors, including assistance from the state.

For information, contact Tydd Rohrbough at (402) 304-0839, or DeEtta Hartman, executive director of the Dawson County Area Economic Development Council, at (308) 784-3902.



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