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500 E. Capitol Ave.
Pierre, SD57501
(605) 773-3212
FOR IMMEDIATE RELEASE: Friday, September 22, 2006
CONTACT: Bruce Lindholm, Program Manager, South Dakota Department of Transportation, (605) 773-7045
Railroad Track at New Ethanol Plant Gets Help from State
PIERRE, SD – Gov. Mike Rounds announced the South Dakota Railroad Board is helping the state’s newest ethanol plant get up and running.
The board has approved a $2-million dollar loan for the Aberdeen Brown County (ABC) Regional Rail Authority. The money will be used to build eight miles of track at the Aberdeen Energy Ethanol Plant near Mina.
“Nearly all ethanol is shipped by rail, so it is important to support the infrastructure development necessary for these projects,” said Gov. Rounds. “We’ve made energy production and the development of our agriculture industry a priority through the state’s 2010 Initiative. This project marks even more progress on our aggressive goals.”
Aberdeen Energy LLC broke ground for their plant on Thursday, Sept. 21, 2006. Construction on the railroad track is projected to begin next April.
ABC Regional Rail Authority has ten years to pay off the loan. The money will become available in April when construction of the track starts. The entire track construction project is expected to cost $5.6 million.
The ethanol plant is projected to be one of the largest ethanol producers in South Dakota, using 35 million bushels of corn, creating 100 million gallons of ethanol and producing 320,000 tons of distillers’ grain every year. The plant will be located on a 287 acre site about two miles west of Mina.
“Ethanol production creates a win-win situation for the entire state,” said Gov. Rounds. “It creates higher corn prices and higher incomes for our corn producers, an excellent fuel for their vehicles, and feed for their animals. That’s what I call a good investment.”
South Dakota has provided $25,221,260 in rail line improvement loans in the past four years.
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