Published: January 13, 2006 09:57 am      

Taking a leap forward

CLINTON — Lt. Gov. Sally Pederson visited the Clinton County Bio Energy facility Thursday morning, her third stop on the “Stronger Communities” tour across Iowa.

Pederson was guided by CCBE Vice President and project manager Dan Holesinger and Clinton Area Development Corp. President/ CEO Steven Ames.

In Gov. Tom Vilsack’s annual Condition of the State address on Tuesday, said Pederson, he recognized that if Iowa is to be competitive in the global marketplace, it needs to recognize its strengths and talents, and the areas where Iowa can take the lead. Biodiesel is certainly a part of that, she said.

“At the community level, this is the type of project we like to see,” said Pederson. “If all we do is produce commodities — corn and soybeans — and don’t add any value to them, we’re really missing the boat.”

CCBE broke ground on a 10 million gallon biodiesel plant in late October, and is expected to be operational in May.

The supply tanks are coming from PES Inc. in Marion, said Holesinger. The processing equipment will come from across the country, and is being put together by Biosource Fuels, of Butte, Mont.

The product that comes in the door is liquid soybean oil, which will be supplied by Cargill of Cedar Rapids initially. To eventually have a supplier in the industrial park would be ideal, said Holesinger.

The oil is stored outside in tanks, and is then pumped in and mixed with methanol. A chemical process creates the biodiesel, with glycerin as a byproduct. The materials are purified, stored and then sold, Holesinger explained.

CCBE is a great anchor for the Lincolnway Rail Port, said Ames, and is a sign of things to come.

“We are working very hard to get rail access in this industrial park,” he said.

One of our main biodiesel markets is Illinois, said Holesinger, which has a wonderful incentive in place. A sales tax is added to diesel fuel, but is removed if the fuel is blended with biodiesel. Iowa has no such incentive at the current time.

CCBE has plans to create 10 full-time jobs, at an average wage of $17.97 per hour. Eight of those positions will be operators, said Holesinger, which will require proficiency in chemistry, maintenance and computer skills.

“We are working with the Eastern Iowa Community College (District) to get a training program in place,” he said.

“None of this happens independently,” said Pederson. “You have to have the educational system to prepare students.”

The biodiesel industry is in the stages of figuring out how to grow, said Holesinger.

“We’re kind of the smaller sister compared to ethanol,” he said.

“We are a long way from where we were seven years ago,” said Pederson, “but we’re not there yet. I believe this legislative session is the time to take a leap forward.”

Plant specifics

The Clinton County Bio Energy biodiesel plant scheduled to open in May will create 10 full-time jobs and will use the soybean oil from more than 7 million bushels of soybeans per year. CCBE has received a state loan package, which includes a $100,000 forgivable loan and a $300,000 loan. It is backed by 20 local investors.

Site plans for the facility show a 4,225-square-foot tank storage building, 1,500-square-foot office and 8,400 square-foot process building with much room for southward expansion. CCBE anticipates significantly increasing its output within two years.

More than 10 million gallons of fossil fuel will be replaced annually, and the plant will produce 700,000 gallons of glycerin, a product used in soaps and cosmetics.

Earlier this month, CCBE was the recipient of a $500,000 U.S. Department of Agriculture Rural Development grant to assist with construction and operational costs.