Sully County ethanol project doubtful

By | September 01, 2002
Developers of a combination ethanol plant and cattle feedlot north of Pierre, S.D. decided to call off the project, saying they don't have the funding. Dakota Value Capture Cooperative (DVVC) raised $29 million in investments, said Curt Mortenson, a spokesman for the project. But developers have had trouble finding a bank that would consider a $36 million loan, he said. One interested bank wanted the U.S. Department of Agriculture to guarantee the loan, but that hasn't happened, Mortenson said.The drought and downturns in the agricultural economy have hurt the project, and banks don't want to take the risk, he said. Investors will get their money back. The idea was to use corn to produce ethanol, feed the byproducts to cattle and use methane from the animals to fuel the operation.