Permitting causes POET to change plans for second Glenville production facility
Largest producer of ethanol to focus development efforts in Eastern Corn Belt
SIOUX FALLS, S.D. (May 2, 2008) - POET, the largest producer of ethanol in the world, has cancelled plans for its proposed facility near Glenville, Minn. According to Larry Ward, Vice President of Project Development for POET, permitting has delayed the project for over a year making the project less attractive in comparison to other potential projects for POET.
“When we selected Glenville for a second ethanol production facility, we believed that we would be holding its grand opening sometime around today,” said Larry Ward, Vice President of Project Development for POET. “Early discussions with the appropriate authorities indicated there wouldn’t be any unusual permitting concerns due to the plant’s close proximity to another POET plant. However, permitting has delayed the project by more than a year and has caused a significant amount of additional costs making it less attractive than other potential projects in the Eastern Corn Belt. Our existing plant in Glenville continues to perform very well and it’s still possible that we may construct a second plant in that area sometime in the future, but it likely won’t be in the next few years.”
“It is POET’s goal to be the most efficient producer of ethanol in the world,” said Ward, “and that starts with making sure our plants are cited in the best possible locations. We have always had a very rigorous due diligence process for site selection that we refuse to compromise. Occasionally, a project that initially looked solid can lose its attractiveness over time. We’ve seen this happen before and have canceled projects in the past.”
POET has opened three new ethanol production facilities in the Eastern Corn Belt states of Indiana and Ohio over the past seven months and will open three more in those states before the end of the year. “We also have four additional sites in the eastern Corn Belt that are in some stages of due diligence and we continue to be excited about the possibilities for increased production in those areas,” said Ward.
The largest ethanol producer in the world according to the Renewable Fuels Association, POET is an established leader in the biorefining industry through project development, design and construction, research and development, plant management, and marketing. The 20-year old company currently operates 23 production facilities in the United States with three more under construction. The company produces and markets more than 1.3 billion gallons of ethanol annually. For more information, go to http://www.poetenergy.com.
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