Ethanol Plants in Wisconsin
This web page was last modified June 27, 2012 at 3:59 AM.
This web page was last modified June 27, 2012 at 3:59 AM.
As reported in its April, 2006 " Wisconsin Biofuels And Alternative Fuel Use Report " annual report, The Department of Administration, Division of Energy is currently working with the Wisconsin Corn Promotion Board ( WCPB ) to supply funding for the installation of E85 equipment at retail gas stations throughout Wisconsin. The Ethanol Refueling Project has provided $100,000 ($77,000 oil overcharge funding, and $23,000 from WCPB ) to establish 15-20 publicly accessible E85 stations near ethanol plants and one E85 metering system that will be used to blend E85 fuel at a local plant. Awards were made to :
January 30th, 2006 –
Governor Doyle Announces Nearly $10 Million in Freight Rail Awards
– Office of the Governor press release.
–
Since the
FRIIP
program was approved by the Legislature in 1993,
WisDOT
has provided 72 loans through the program totaling $73.7 million. Another $35.7 million in
FRPP
grants have been awarded to local governments and railroads since 1993. Twelve freight railroads operate in Wisconsin on a system of over 3,600 route miles of track, handling some 2.5 million rail cars in the state each year.
In March 2007, our subsidiary, ALL Energy Company, and ACE Ethanol, LLC, the operator of an ethanol production facility in Stanley, Wisconsin, with a design capacity of 30 million gallons per year (currently producing approximately 43 million gallons annually), signed a letter of intent with respect to the proposed purchase by ALL Energy Company of 100% of the outstanding membership interests in ACE Ethanol, LLC. The anticipated $106 million acquisition is subject to the approval of the ACE Ethanol, LLC members and negotiation of the definitive acquisition agreement. We continue our efforts in acquiring Ace Ethanol.
Here are Ace Ethanol political contributions, made under the company's name. These are political contributions made by Ace’s Robert Sather , representing Wisconsin Ethanol Producers.
CHICAGO (June 21, 2006) – U.S. Environmental Protection Agency Region 5 has reached an agreement with Ace Ethanol LLC, Stanley, Wis., and John S. Olynick Inc., Gilman, Wis., for allegedly filling in 7,900 square feet of wetlands in Stanley — next to a tributary of the Wolf River — without first obtaining the required permit. Under the terms of a June 15 consent agreement and final order the companies will pay a $61,000 penalty. Under the federal Clean Water Act, a permit from the U.S. Army Corps of Engineers is required to fill in waters of the United States, including wetlands. Wetlands include marshes, bogs, swamps and similar areas between water and dry land. They are valuable because they filter pollutants, provide wildlife habitat, control flooding, reduce erosion, support fisheries and recharge ground water.
As of October 5th, 2003, Ace was out of compliance with the Clean Air Act for three quarters running. As of 23 January, 2004, Ace Ethanol was ordered to install pollution control equipment and pay fines of $300,000 in
a settlement (PDF file)
reached with the Wisconsin Attorney General's office. –
‘In fact, the air pollutant emissions from the plant were much higher than promised, and emissions control equipment should have been installed when the plant was constructed — something Ace and its consultant should have known from the experience at ethanol plants that had been built in Minnesota a year or two earlier,’ Lautenschlager said.
April 17th, 2003 – At a ceremony including such political luminaries as Wisconsin Governor Jim Doyle, Ace Ethanol receives a 1.3 million dollar subsidy check from the taxpayers of Wisconsin. In
a press release
announcing the ceremony State Senator Dave Zein proclaims,
Ethanol is good for farmers, it’s good for the environment, and it’s good for the economy.
He adds,
Ace Ethanol should be congratulated for all it is doing for our community.
The jury is still out on whether or not Ace is helping local farmers but one thing is certain: At the time Ace was receiving this grant, their plant was ‘doing’ the surrounding community and environment with polluted air!
Badger State Ethanol
(Political contributions
made under the company's own name.)
Nearly 60 firefighters from departments across southern Wisconsin and northwestern Illinois responded to a blaze that broke out at Badger State Ethanol in Monroe, Wis. Monday afternoon and took most of the night to douse.
Castle Rock Renewable Fuels is wholly owned by Babcock and Brown. Babcock and Brown originated as an investment group hoping to create and cash in on a heavily subsidized Australian biofuels market. When commonsense prevailed in Australia and the market never materialized, a disgruntled Babcock and Brown hightailed it to the west coast of the United States, knowing there was subsidized gold in them there hills.
SPARTA, Wis. – Century Foods International will buy the proposed 83.7–acre Sparta ethanol plant site from Coulee Area Renewable Energy LLC . CARE will not build an ethanol plant within three miles of Century Foods’ Sparta plants. And all lawsuits filed during the yearlong fight over the proposed site will be dismissed. Those are highlights of a 15–page settlement agreement the Sparta City Council approved Tuesday night. Besides the city, Century Foods and parent company Hormel Foods Corp. , CARE and Friends of Sparta – a citizens group that opposed the proposed Sparta ethanol plant – are parties to the agreement as well. All of the parties were plaintiffs and/or defendants in lawsuits over the site.
Didion Milling , after having their 2002 proposal for a Cambria plant soundly defeated, came back with a well financed campaign in 2006. Didion built the plant about 22 feet south of the site of their earlier attempt. The new site is barely outside of the Cambria village limits. Strong Cambria zoning laws prohibit ethanol plants within the village.
2005 satellite view of Didion Milling’s existing facility
(The site of the ethanol plant is just to the south across the narrow gravel road.)
Eco Products of Plover, ( aka Central Wisconsin Alcohol, aka Plover Ethanol), a small plant in the Town of Plover, has no web presence that I can find. They have had some incidents: a fire with one person severely injured and, before the fire, a spill which contaminated the groundwater and, it appears, one additional spill .
NexGen Biofuels, the multinational parent company of Reedsburg Biofuels, informed City Attorney Jim Gerlach this week that the company will not take up the option to purchase city–owned land in Reedsburg’s industrial park.
One of Wisconsin’s nine operating ethanol plants are taking the legal steps of filing for bankruptcy protection. This week, the Renew Energy, LLC board of directors voted to file for Chapter 11 under the United States Bankruptcy Code, which will allow them to continue operating their Jefferson facilities under certain rules.
An open valve led to an unplanned discharge of waste at an ethanol plant along Highway 26 outside of Jefferson last week, resulting in another invasion of nasty smells in the neighborhood, residents and officials confirmed Thursday.
Neighbors of a giant ethanol plant near Jefferson are gagging from odors from a lagoon, and they have been holding their breaths waiting for a company solution.
Jefferson Grain Processors LLC said it has signed a letter of intent to purchase the Cargill Inc. malting plant, just north of the city of Jefferson along Highway 26, said (former state Senator) Bob Welch, a spokesman for the newly formed company.
But, lurking in the background behind 2005 Assembly Bill 15 and 2005 Senate Bill 15 is a Wisconsin state senator whose brother is poised to be the biggest winner if the bills pass. If you connect the dots, it looks like the senator, Luther Olsen ( R –Ripon), would do pretty well himself. The bills would require, with certain limited exceptions, ‘that the minimum specifications for automotive gasoline must require that automotive gasoline contain not less than 9.2 per cent nor more than 10 per cent ethanol.’ Seems like a great deal for Paul Olsen, head of an investor group that recently announced plans to purchase the former Ladish Malting plant in Jefferson from Cargill Malt to convert it to an ethanol plant and fish farm. Paul Olsen already operates Utica Energy, LLC , which owns an ethanol plant in Oshkosh, which last week settled an air pollution suit brought by Atty. Gen. Peg Lautenschlager for tens of thousands of dollars.
January 30th, 2006 –
Governor Doyle Announces Nearly $10 Million in Freight Rail Awards
– Office of the Governor press release.
–
Utica Energy, Oshkosh (Jefferson). Utica Energy of Oshkosh will use a $1.9 million loan to construct a rail siding, three ethanol storage tanks, and a pipeline connecting the tanks and siding at the current Cargill Malting facility in Jefferson. Utica Energy plans to construct a 11–million–gallon ethanol production facility and a 20–million–gallon bio–diesel facility at the site.
The rail siding may also be used in the future to bring in coal for a planned co–generation facility.
The overall project is expected to promote energy alternatives and support the market for corn benefiting the area agricultural community. The ethanol plant will be located along rail lines served by the Union Pacific Railroad Company.
(Ed: Emphasis mine)
Two people received treatment for burns sustained while working in a storage vat at the Utica Energy plant on State Highway 91 west of Oshkosh on Wednesday.
MADISON – The state has settled a lawsuit against Utica Energy, LLC for violations of the state’s air and water pollution control laws at Utica’s Winnebago County ethanol plant. The Department of Justice filed and settled the case following an investigation by the Department of Natural Resources (DNR).
Under the terms of the settlement agreement, Utica will pay penalties, fees, and costs totaling $75,000 for the violations
‘Utica Energy repeatedly constructed and operated facilities before the required permits and emissions control equipment were in place, resulting in excessive emissions of air pollutants,’ Lautenschlager said. ‘While the necessary air pollution control equipment has since been installed, the court agreed that penalties are warranted for Utica Energy’s failure to comply with the permitting process.’
A Merrill company filed suit in Winnebago County Circuit Court seeking close to $878,000 in back payments for construction of an ethanol plant that opened earlier this year.
March 2005 – Sheboygan Planning Commission Recommendation – In response to residents' concerns over safety and environmental issues, The City of Sheboygan Planning Commission cast a unanimous vote against rezoning the former Cargill Malt Company from Urban Industrial to Heavy Industrial blocking the way for Utica Energy to build an Ethanol plant on a site located in a Sheboygan, WI neighborhood.
…the City of Sheboygan Comprehensive Plan states “over the last twenty years the City of Sheboygan has worked diligently to make planning, zoning, development and redevelopment decisions that both avoid and correct areas of conflict” This proposal will increase conflict. Therefore, is (sic) staff’s recommendation that the proposed rezone from Urban Industrial(UI) to Heavy Industrial(HI) should be denied for the following reasons:
- It does not protect water and air quality.
- It does not protect and enhance the unique functional qualities of the Sheboygan Riverfront.
- It does not ensure that conflicts between neighboring land uses are minimized.
- It does not ensure that heavy industrial development proposals are (not) located within location sensitive lands and it does not take advantage of more appropriate industrial zoned land.
- It does not provide for adequate road capacities and road quality.
- It does not provide for the minimization of transportation facility disruptions by land use.
- It does not encourage the upkeep and maintenance of existing housing.
- It does not facilitate the provisions of balancing the community wide needs with local concerns.
- It does not protect the public health, safety, morals, comfort, convenience and welfare of Sheboygan citizens.
UWGP plant in operation
UWGP plant at night from south of Cambria on Hwy 146 three miles away.
We May be Subject to Nuisance Claims Due to the Nature of Our Plant, Addressing the Costs of Which Will Deplete Our Resources and Could Reduce Our Financial Performance - We intend to locate the plant in Columbia County near the village of Friesland. Ethanol production has been known to produce an odor to which surrounding residents could object, and may also increase dust in the area due to its operations and the transportation of grain to the plant and ethanol and Distillers Dried Grains from the plant. Such activities could subject us to nuisance, trespass or similar claims by employees or property owners or residents in the vicinity of the plant. To help minimize the risk of nuisance claims based on odors related to the production of ethanol and its byproducts, we intend to install a thermal oxidizer in the Plant. See "BUSINESS (:) Thermal Oxidizer." Nonetheless, the costs of defending against any such claims, or increased costs to address complaints, could harm may reduce our financial performance, and could reduce the amount of cash available to distribute to investors or to enhance our business.
2005 satellite view of United Wisconsin Grain Producers plant
After months of intense and costly lobbying by WWRE and state officials including the Governor and Wisconsin Department of Agriculture, Trade, and Consumer Protection, on June 22nd, 2005 the Dunn County board caved and voted the necessary zoning changes.
United Ethanol is a wholly owned subsidiary of United Cooperative. Amidst charges of secret dealings with local officials and failure to adhere to building permits, the company faced a fierce battle with citizens in the Milton, Wisconsin area as they tried a second time to find a site for their ethanol plant. (United was prevented from constructing a plant at their milling plant site in Horicon. The Horicon plant proposal encountered overwhelming local opposition.)
January 30th, 2006 –
Governor Doyle Announces Nearly $10 Million in Freight Rail Awards
– Office of the Governor press release.
–
United Ethanol Cooperative, Beaver Dam (Milton). A $2,999,806 loan will help construct rail spur tracks, and ethanol and dry distiller grain load–out facilities associated with a 40 million gallon capacity ethanol production facility United
Co-op
is constructing in the city of Milton industrial park. Once completed, United
Co-op
will be able to receive and ship–out 25–car unit trains of corn, ethanol and dry distiller grain which will enhance transportation efficiency, reduce transportation costs, and support stronger prices for agricultural commodities. The ethanol plant will be located along rail lines served by the Wisconsin and Southern Railroad Company.
March 12, 2006 – Milwaukee Journal Sentinel –
In Milton, a deal is done in the dark
–
What's not in dispute is that the Milton City Council met in closed session over a period of nine months negotiating a development agreement with United Ethanol that included more than $800,000 in subsidies to the company and required the city to borrow $3 million to pay for infrastructure improvements such as roads, sewers and a well.
Other than the aldermen, the developer and a few city staff members or special insiders, no Milton city resident knew what they were talking about because agendas for the closed sessions never mentioned the subject of the secret meetings.
Despite the determined opposition the plant broke ground, and as we learn from their web site,
Construction is on schedule with corn processing starting in December & Ethanol production in January 2007. As of now ALL objections about the plant that had been raised by very few folks have been dropped.
March 31st, 2006 – Ethanol plant records opened to public – Janesville Gazette – However, a judge ruled that all documents relating to dealings between United Ethanol and Milton officials must be made public. Perhaps we haven't heard the last of this story.
April 16th, 2008 – Wisconsin Department of Natural Resources – Subject: Letter of Noncompliance
The Department of Natural Resources (Department) has reason to believe that United Ethanol, LLC (UE) is in non-compliance with its construction permit, Permit # 06-DCF-094, issued on Aug. 31, 2006, and Wisconsin’s air pollution control regulations at its plant located at 1250 Chicago St., Milton, WI. More specifically, the Department believes that United Ethanol is not in compliance with the following permit conditions, Wisconsin Administrative Codes and Wisconsin Statutes related to the most recent RTO (Stack S09; Controls C06, C07 (multiclone, RTO); Processes P33, P34; - DDGS Dryers, DDGS Cooling Cyclone; P42, P43; Truck Loading Rack and Railcar Loading Rack.) compliance stack testing.
This FCE evaluates compliance from the start of operations through 2/29/08. There are many conflicting and missing records. The facility was not constructed in accordance with the permit or permit application. The permittee did not install all process equipment consistent with the permit or application. The permittee did not install all pollution control devices prior to operation. The permittee did not inspect any pollution control devices prior to operation. The permittee has not operated in accordance with the permit.
Early 12/24 a maintenance mechanic drove to another plant site and obtained a replacement control box. The control box was installed by plant maintenance staff and Van Ert Electric. The control box was programmed in Chinese and took most of the day to set the operating parameters.
MILTON — The Wisconsin Department of Natural Resources has named United Ethanol a “high–priority violation” after finding hundreds of violations of the plant’s permit.
An inspection report released earlier this month by Brian Barbieur, air management engineer, recommends the DNR refer the case to the Wisconsin Department of Justice for fines and forfeitures.
“This is a very serious case in our view,” said Eileen Pierce, DNR regional air and waste leader.
The scope of the project being studied will include shipping and receiving capacity increases, the first of which is already under construction, plant processing capacity increases, additional product storage, and logistics improvements. (‘)If the feasibility study and engineering study come back positive, we plan to be at 60 million by the end of the year, and 80 by the end of 2007’, stated ( CEO Jeff) Robertson.
…Bob Lange, a member of the United Wisconsin Grain Producers board, made frequent trips into her store, telling her about the potential growth she could see. "He was in here constantly for awhile, bringing in brochures and telling us all the business we could get," Bobholz said. "It sure didn't happen when they were building.
The whole principle of buying a private company that's not profitable and very illiquid… is not necessarily a good idea for the general public. Almost never have I found these private limited partnership things work out well for the investor.
The volume of discharge and or (Tarrant) lake freezing concerns expressed by some is a civil matter - and will involve riparian rights.(see also first paragraphs of the section entitled " Some industrial considerations " elsewhere on our web site.)
Due to the several factors affecting the price of ethanol, we are unable to predict with any degree of certainty where prices might be during fiscal 2006.
During the 2005 fiscal year, we recorded revenue of $475,000 from the State of Wisconsin incentive program. Due to a sunset date of June 30, 2006, we do not expect to record any more revenue from this program.
…we may not be able to secure natural gas for prices less than current market price and we may not recover high costs of production resulting from high natural gas prices, which may raise our costs of production and reduce our net income.
Net Income (Loss) Per Unit (28,780 weighted average units outstanding) – $163.43— Distribution Per Unit – $200.00
At March 31, 2006, the Company had forward corn purchase contracts totaling approximately 13,000,000 bushels for various delivery periods from April 2006 to November 2008 of which approximately
40% are with members
.
As of September 30, 2005, plant construction was substantially complete and we were operating the plant and producing ethanol and distillers grains. The project will reach final completion once we successfully pass emissions testing. We are currently conducting preliminary emissions testing and are working with our process design engineer to take any remedial action necessary to assist the plant in preparing for the final emissions testing. Final emissions testing is currently scheduled for December 2005.
From the section entitled "Ethanol's Time has come!" on the front page of the
UWGP
(United Wisconsin Grain Producers) web site as of August 8th, 2003:
All local zoning permits have been obtained
(emphasis added) by
UWGP
.
DNR
(Department of Natural Resources) permits are expected to be obtained by the end of July 2003.
From the Wisconsin State Journal business section article on July 20th, 2003 entitled "Betting On Ethanol":
David Hughes, town of Randolph chairman, said his board had approved a resolution supporting the (
UWGP
Friesland) plant, which
needs no permits
from his community
to be built
(emphasis added).