Bio-energy could be the solution to ensuring the future of the Otter Tail Ag Enterprises ethanol plant in Fergus Falls.

Otter Tail Ag CEO Anthony Hicks announced Friday night that the company is considering locating a new sustainable bio-energy center at the site of the ethanol plant.

"The project has the potential to create new jobs and revenues, is cost effective, not water intensive, and environmentally clean,” Hicks said.

“And it adds value to the bottom line, which is why I am excited about the concept," he said.

That’s important, because the ethanol plant lost $21.5 million during the year ending Sept. 30, 2009, the company announced Dec. 31, 2009 in the filing of its annual report. Otter Tail Ag filed for Chapter 11 bankruptcy on Oct. 30, 2009 and is in the process of seeking $10-12 million in capital from investors. As a matter of fact, the company is hosting meetings for potential investors at 6 p.m. Monday at the Bigwood Event Center in Fergus Falls and other locations in the region later in the week.

"This project has fostered cooperation between a rural electric cooperative, Federal and State governmental agencies and private sector companies to create and enhance the bio-energy center partnerships," Hicks said.

"Lake Region Electric Cooperative of Pelican Rapids along with Growth Design Corporation and Great River Energy are working together with us on plans to produce biodiesel and generate electricity at the plant using byproducts from the ethanol process," Hicks said.

Biodiesel technology uses a process invented by SarTec Co. of Anoka and Augsburg College in Minneapolis.

According to SarTec’s Website, the company in 2006 discovered a one-step oil to fuel production process, termed the "Mcgyan Process." The process performs a catalytic conversion of triglycerides and free fatty acids into biodiesel fuel. The process offers several advantages over current biodiesel production methods. SarTec now has eight pending patents related to biofuels production.

Growth Design Corporation, according to its Website, is a Milwaukee, Wis. consulting firm with an interest in energy. The company has been involved in plants in Isanti and Anoka and is consulting on another plant in Forest City, Ia.

Bill Luetscher, executive vice president of Growth Design Corporation, said the plant would utilize the Mcgyan process.

“Industry analysts have been surprised by how well the Mcgyan process works and its implications for fuel production worldwide. This process has many advantages over previous biodiesel production methods," Luetscher said.

"It can convert a much wider range of feedstock oils and animal fats into biodiesel, including the byproducts from ethanol production,” he said.

The Mcgyan Process recycles the catalyst and alcohol necessary to make biodiesel; it reduces the reaction time from hours to seconds; and it doesn't use water or dangerous chemicals.

“In short, it can make more biodiesel quickly and with a minimal impact on the environment," Luetscher said.

Hicks is enthusiastic about the potential for bio-energy because some feel it will lead the effort toward energy independence in the United States. It could also make Otter Tail Ag and Fergus Falls a leader in bio-energy technology.

"This new bio-energy center concept shows what is possible when we work together, and may be an example for other ethanol plants to follow,” said Tim Thompson, Lake Region Electric Cooperative CEO.

“It is an example of sustainable energy development that could benefit other rural communities. I'm proud to say it could begin at the Otter Tail Ag plant,” Thompson said.

source: fergusfallsjournal

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