55 M Gallon Ethanol Plant in Michigan Helps Dairy Industry

The 55 million gallon per year plant, adjacent to a grain terminal, will produce ethanol from corn grown by local farmers and will also produce distillers grains, a high quality feed supplement ideal for the region's growing dairy industry.

"We are particularly pleased to be making this investment at a time when the price of crude oil exceeds $60 per barrel and there is rising concern about the nation's oil dependence and the effects of climate change," said Dan W. Reicher, New Energy Capital president and former United States Assistant Secretary of Energy.

Ethanol from the plant will be blended with gasoline for use in the transportation sector. The use of ethanol as a replacement for gasoline cuts U.S. oil dependence, stimulates the nation's farm economy and reduces greenhouse gas emissions.

"This investment deepens our commitment to the biofuels industry and will deliver important benefits to the nation and our shareholders," said Scott Brown, New Energy Capital CEO.

The facility, adjacent to a grain terminal owned by The Andersons, will be managed by The Andersons, and will involve an aggregate investment of about $86 million. The designer and general contractor will be ICM, Inc. of Colwich, Kansas. The Andersons and New Energy Capital are joined by three other equity investors, and CoBank of Omaha, Nebraska, will lead a consortium of farm credit banks to provide construction and term financing. Plant construction will involve approximately 250 new jobs and operations will require about 30 full time staff.