Vision Fuels receives extension until June 1 from Des Moines for financing $210 million corn ethanol plant

In Iowa, the city of Des Moines has given Vision Fuels Des Moines an extension until June 1st to provide a financing commitment for their proposed $210 million corn ethanol plant, situated on 164 acres of city-owned land. The company has provided nearly $1 million in non-refundable deposits for the natural gas-powered plant that was first proposed in 2006.

Vision Fuels Des Moines originally asked for an extension to complete $210 million in project financing for their 100 Mgy facility last September. The owners cited difficult financing conditions which have led projects such as Akron Riverview Corn Processors to suspend their financing efforts for the 100 Mgy Akron, IA project.

Capital sources for ethanol projects have been increasingly difficult to find over the past 12 months, with many projects in the US on hold.

Among the more prominent plants in financing trouble, Central Illinois Energy put its 37 Mgy Canton, OH ethanol plant up for sale after failing to secure $30 million in additional funding. Credit Suisse, the lead bank among the lenders, reportedly forced the sale. The plant was originally projected to cost $40 million, but has spent nearly $130 million on the project.

Among other projects, Aventine Renewable Energy canceled a plant expansion in Pekin, and Alternative Energy is facing financing delays for its proposed plants in Kankakee and Greenville. The Pekin project would have added 113 Mgy in production capacity. In all, Aventine suspended work on five projects with 565 Mgy in planned capacity.

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