Headwaters Incorporated, Great River Energy to build ethanol plant
Bismarck, ND (March 14, 2005) - North Dakota Governor John Hoeven announced today that Headwaters Incorporated has completed a non-binding memorandum of understanding with Great River Energy to build a new state-of-the-art $65 million ethanol plant on land adjacent to Coal Creek Station near Underwood, N.D. Construction would begin this fall and the plant would begin operation the fall of 2006.
“The ethanol incentives that we have put in place – including marketing incentives, investment tax credits, and a counter-cyclical production incentive for new ethanol plants – are now beginning to produce real results,” says Hoeven. “This is the second venture announced in the state in the past week. Together, they mark the next chapter in a new era of energy development in North Dakota.”
Jim Van Epps, CEO, Great River Energy, signed the non-binding memorandum of understanding with Kirk A. Benson, Chairman and Chief Executive Officer of Headwaters Incorporated. “We’re pleased to be involved in the production of a renewable fuel such as ethanol as it will help our nation reduce its dependence on foreign oil,” says Van Epps.
Through a limited liability corporation, Headwaters Incorporated would be the majority owner of the plant, while Great River Energy would be a minority owner and a service provider. The ethanol plant would use waste steam from Coal Creek Station as part of the process to make ethanol.
“By co-locating at Coal Creek Station, we are able to take advantage of waste steam from the power plant. This eliminates the need to build a boiler and reduces the overall cost of the ethanol plant,” says Benson. It will also reduce emissions as compared to a “stand-alone” plant.
The ethanol plant would produce 50 million gallons of ethanol per year and would require 18 million bushels of corn per year, with much of it coming locally and from southeast North Dakota. The plant would also produce enough dried or wet distillers grain for approximately 225,000 feeder cattle on an annual basis.
The economic impact of the plant would be significant as it would require 200 jobs during construction, and approximately 30 jobs when operating. The economic impact of the plant would be about $160 million on an annual basis.
Great River Energy (www.GreatRiverEnergy.com) is a not-for-profit generation and transmission cooperative providing electricity to 28 distribution cooperatives in Minnesota and Wisconsin. It is the second largest power supplier in the state of Minnesota, and the fourth largest cooperative of its type in the nation.
Headwaters Incorporated (www.headwaters.com) is a world leader in creating value through innovative advancements in the utilization of natural resources. Headwaters is a diversified growth company providing products, technologies and services to the energy, construction and home improvement industries. Through its alternative energy, coal combustion products, and building products businesses, the company earns a growing revenue stream that provides the capital needed to expand and acquire synergistic new business opportunities.
