By Maggie Nixon, Pilot-News Staff Writer
PLYMOUTH - The rumor of locating an ethanol plant in Marshall County has been circulating for quite some time, but the public meeting on the matter March 8 will bring the possibility to the forefront once again.
Marshall County's Plan Commission, BZA, Council and Commissioners, along with County Attorney Jim Clevenger and members of the Argos Town Board, were invited to the informational meeting by president Kevin Overmyer at Monday's commissioners meeting. The public is also invited to the meeting designed to educate the community and its leaders on ethanol plants.
“We need to see if there's anything they may want from us,” Overmyer said, “if anything at all.”
Bill Swan, grain merchant for Cargill Ag Transfer in Bremen said he hadn't heard about the idea of a local plant for the past few months, until he was contacted Tuesday.
“I heard talk of one,” he said, “or the possibility of one, but beyond a doubt with the administration embracing alternative fuels, it's probably a good time to look seriously at ethanol expansion.”
Fulton County was the preferred location, until talks with local leaders began that made Argos a possibility. More than 30 investors, mostly in the Fulton County area, are hoping Minnesota-based ethanol plant manufacturer Fagen Inc. would consider building a plant nearby. It has been reported that several investors have about $1.25 million in seed money, but need $10 million in Industrial Revenue Bonds.
Monday, Overmyer suggested Clevenger study up on the IRBs prior to the meeting.
It is estimated $125 million is needed to build the plant here. About $25 million is needed for operating capital, with an additional $60 million in equity financing.
Swan explained with every new plant created, about 40 million bushel of corn is used per year. “That's an awful lot of Number 2 Yellow Corn,” he said. “That's high demand and that should increase the price the farmer receives.”
Bob Yoder, county extension educator, ANR (Agriculture and Natural Resources), agreed a local plant would be a major benefit to farmers, as well.
“Ethanol plants use a lot of grain, which would strengthen the local basis for the grain price,” he said. “The more corn that is used locally, the stronger the price is.”
Yoder explained that the county's cost is now $2 per bushel. He said the increase cost per bushel would rise. “If and ethanol plant is built and gets into production, it could add, in my estimation, about 5 to 10 cents per bushel.”
As a comparison, Yoder said Davies County is paying about $2.05 per bushel, but in southern Indiana where there is a river market, Posey County, the cost is $2.12 per bushel.
“That just gives an idea of what prices are across state of Indiana,” he said. “But the stronger the use is locally, we can gain more of that price. If you raise 11 million bushels times five cents, that's some money.”
Commissioner John Zentz said he thinks a plant would be, “perhaps a wonderful opportunity for our agricultural community, providing we can control the odor.”
He explained a lot of people are familiar with the operation in St. Joseph County. “I don't think we're interested in inflicting that on our citizens,” Zentz said, “but when they use the amount of corn they're talking about using, it has to be a real boom for our farmers.”
The St. Joseph County New Energy plant does not operate like the one local leaders are interested in here. This ethanol plant would be a dry mill plant, which helps eliminate odor, and also will have no corn-drying, which will help reduce dirt and noise associated with some ethanol production facilities.
“I think we're here to listen and to learn,” Zentz said, “and perhaps throw some ideas on the table.”
Zentz said an idea by local businessman Tom Andrews, co-owner of DNS Online, was brought up during Zentz's guest spot on the morning AM1050 radio show that has raised interest.
“Using the county farm is an idea we need to take a look at,” he said, “But, first, we might have a zoning issue there with the city, and we have to decide if it would be to their advantage to take a look at it. At this point, we can't throw anything out yet.”
However, investors, Zentz said, have options on land in Argos and in Fulton County. The land in Argos holds about 160 acres where the Fulton County land is around 200 acres.
It is estimated a new ethanol plant would host 40 jobs, in addition to raising corn to nearly 40 million bushels a year.