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June 21, 2009 | Jim Lane | Comments 0

Olmstead County annexes land to accelerate 55 Mgy Minnergy ethanol plant in Minnesota

In Minnesota, the Olmsted County Board voted to permit annexation of land into the county that will permit the go-ahead of a planned 55 Mgy ethanol plant that Minnergy proposes to construct near Eyota. A group of local residents are mounting a last-ditch campaign to delay or cancel the project over water and air concerns.

Minnergy has also said that it plans to eventually increase the capacity of the plant to 75 Mgy. The project has a budget cited at between $110 million and $133 million. The Minnesota Pollution Control Agency previously cleared the way for the project.

Earlier this year, the controversial MinnErgy corn ethanol plant in Eyota returned to the headlines with the news that the public stock offering had been cancelled after raising only $1.57 million of the company’s $89 million goal. Company executives returned all funds to investors and said that the company would proceed with a private placement to raise money for the $133 million plant.

The project inspired strong local resident opposition, and local opponent Jeff Broberg said in a statement “It is gratifying to know that investors have shunned MinnErgy’s ethanol proposal as a high-risk investment and an unsustainable venture.”

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