Alternative Energy Sources Inc., a Kansas City-based company, today announced plans to build a 110-million-gallon ethanol plant in Boone County, Iowa, between Ogden and Beaver in the central part of the state. The plant will be adjacent to a railroad line.



"We have had a very strong relationship with the Union Pacific Railroad for almost 20 years, and look forward to capitalizing on 100-car unit train ethanol and dried distillers' grains capabilities while optimizing supply-chain efficiencies," said Mark Beemer, president and CEO. Beemer, a native of Webster City, Iowa, is a former vice president of Archer Daniels Midland's Grain Division, the nation's No. 1 ethanol producer.



The permitting process will begin with the Iowa Department of Natural Resources, and the company has secured options to buy 625 acres from five landowners. "The large footprint will provide AENS great flexibility in plant design, allowing us to build significant rail infrastructure to accommodate the high-density Union Pacific mainline," Beemer stated.



"We plan to start construction in six to nine months and have the plant in operation by fall 2008," added Lee Blank, chief operating officer. Lee is from Garner, Iowa, and is also a former ADM executive.



Once in operation, the plant will create jobs for 45 to 55 people with payroll between $2.5 and $3.5 million. Due to the flexibility of the Union Pacific franchise, the ethanol can be shipped to a multitude of destination markets, allowing AENS ethanol and DDG market arbitrage opportunities. The facility will be shipping approximately one unit-train per week.



The company also plans to build additional plants in the Midwest with each plant expected to produce nearly 100 carloads of ethanol per week. Beemer said this is the first plant for AENS.



SOURCE Alternative Energy Sources Inc.