Minnesota Energy Manage

Ethanol Plant Gets Grant From Minnesota

Minnesota Energy ManageDENCO II, a Morris-MN ethanol plant, has received a grant of $750,000 from the Minnesota Department of Economic Development. The funds will be used to improve the energy efficiency of the facility, according to Ethanol Producer.

The 24 million-gallon-a-year (MMGY) facility is installing a fermenter and a hammer mill and its expanding its cooling tower. The project will cost $1.5 million. The city will own the equipment for 12 years. At that point, it will become the property of DENCO II. The plant is responsible for its maintenance. This is the second grant to the plant. The first was used to improve waste water treatment.

The ethanol industry is deeply tied to gas prices. The dip in those prices is taking its toll. For instance, The Vireol Bio Energy plant in Hopewell, VA, has suspended ethanol production due to the drop in gas prices. The story at The Progress-Index said that AAA found that gas prices in mid-August lost $.79 per gallon compared to a year earlier.

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