ASAlliances breaks ground in Nebraska

By | March 01, 2006
On Jan. 18, Nebraska Gov. Dave Heineman among many others attended a groundbreaking ceremony for ASA Albion, a 100 MMgy ethanol plant being developed by ASAlliances Holdings LLC in Albion, Neb.

Site work is currently underway. Fagen Inc. will start building the plant, using ICM Inc. design, in late February or early March, according to ASAlliances Holdings President David Black. If all goes as planned, the facility will start producing corn-based ethanol by late summer 2007. "The whole project development took about two years," Black told EPM. "The financing and structuring agreements, contracts, and legal process took about 10 months."

The plant will be built adjacent to a Cargill AgHorizons grain elevator, therefore Cargill will procure the plant's corn feedstock. It will also act as ASA Albion's ethanol and distillers grains marketer. The plant will produce just over 300,000 tons of distillers wet and dry grains, which will be distributed along with the ethanol to the local area and possibly the West Coast by truck and rail. The company has no plans to capture its carbon dioxide, according to Black.

United Bio Energy in Wichita, Kan., will act as the plant's operator.

ASAlliances' decision to enter the ethanol industry was influenced by company partner Steve Durham, who had invested in ethanol projects in the past. "His vision of the industry was different than what it currently was," Black said. "He felt the need for a larger institutional approach with strategic service providers. He attracted myself and others to explore a structure that would ultimately be more efficient and more attractive to the capital market."

Black said ASAlliances Holdings, formerly Demeter Enterprises, developed a new entity, ASAlliances Biofuels LLC, to oversee the company's ethanol operations. ASAlliances broke ground Jan. 19 on a similar ethanol project in Linden, Ind. (see Industry News, page 14).
-Staff Report