ADM to make powerful addition

COLUMBUS - The local economy is expected to get a boost with the expansion of ethanol production at the Archer Daniels Midland Co. here.

An additional 275 million gallons of ethanol will be in annual production by 2008 at a new facility being built next to the existing plant at 3000 East Eighth Street. This translates into more jobs as well as a greater demand for area grain.

Renewable Fuels spokesman Matt Hartwig of Washington, D.C., said one bushel of corn makes 2.8 gallons of ethanol.

“These are all big impacts economically on the community,” Columbus Area Chamber of Commerce president K.C. Belitz said this morning. He said ADM's expansion announcement on Thursday, as well as the ongoing growth of the city's employers, such as Becton Dickinson and Company, Hy-Vee and others, is exciting.

“We think it speaks well of the quality of the work force they're finding,” Belitz said.

ADM Vice President of Public Relations Karla Miller said she was not allowed to disclose the cost of the new facility or the number of gallons of current ethanol production.

Miller also was unable to say what the cost is for building a proposed coal-fired co-generation plant in Columbus to help power its corn milling and ethanol operations.

The co-generation plant is expected to be able to burn a blend of fuels, including high- and low-sulfur coals, tire-derived fuel and biomass to produce steam and electric energy. As with the expanded ethanol plant, construction is dependent upon governmental approvals.

Company officials said the addition of the power plant will help lower ADM's overall energy costs and lessen its vulnerability to energy market price fluctuations. It currently operates similar co-generation facilities in Decatur, Ill., and Cedar Rapids, Iowa, and has another under construction in Clinton, Iowa.

Loup Power District President and CEO Neal Suess said this morning the proposed power plant would have minimal impact on Loup, and he does not anticipate any increase in electrical rates because of the plant. Suess said ADM's selection of Columbus for its increased ethanol production is “a huge benefit for the whole of Columbus.”

The Nebraska Ethanol Board said typically, ethanol is blended with ordinary unleaded gasoline to create a blend that provides increased octane, lower exhaust emissions and helps keep fuel injectors clean. The two primary ethanol blends available are E-10 Unleaded (10 percent ethanol/90 percent ordinary gasoline) and E85 (85 percent ethanol/15 percent ordinary gasoline.)

“ADM is well-positioned to meet the nation's growing demand for ethanol, a renewable and cleaner-burning biofuel that helps reduce pollution and toxins,” ADM's Senior Vice President of Corn Milling and Bioproducts Edward A. Harjehausen said in a news release.

ADM is one of the world's largest processors of soybeans, corn, wheat and cocoa. ADM also is a leader in the production of soy meal and oil, ethanol, corn sweeteners and flour. In addition, ADM produces value-added food and feed ingredients.

Headquartered in Decatur, Ill, ADM has more than 25,000 employees, more than 250 processing plants and net sales for the fiscal year ending June 30, 2005 of $35.9 billion.