North Dakota Council releases $500K to Spirit Ethanol; sets June 1 as “must begin construction” date

In North Dakota, the Jamestown City Council voted to release $587,500 in city funds to Spirit Ethanol. The Council also gave the Newman Group until June 1st to commence construction of its proposed ethanol plant in the Spiritwood Energy Park.

Last July, the Newman Group announced that their 100 Mgy corn ethanol project at Spiritwood was placed on hold due to high feedstock prices and water availability. Company executives said that the plant would not be profitable at corn prices of $7 per bushel, and that the Spiritwood-area aquifer did not have enough water to provide for both a recently expanded Cargill malt plant in the area and the Spiritwood ethanol facility.

In November 2007, Great River Energy, Cargill and Newman Group broke ground on the $500 million Spiritwood Station complex that includes the 100 Mgy ethanol plant. The complex will also feature a coal-based power plant that will produce electricity for the Great River member co-ops in Minnesota, as well as steam for a Cargill malt processor and the ethanol plant.

Spirit Ethanol had reduced its projected freshwater needs from the Spiritwood aquifer, in planning last year, to 140,000 gallons per day. The remainder would come primarily from wastewater recovered from a nearby Cargill malt plant, which uses 4 million gallons per day from the acquifer.he City Council voted unanimously in a special meeting Tuesday to allow the next payment of $587,500 in city sales tax funds to Spirit Ethanol on the advice of City Attorney Ken Dalsted.

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