Belle Plaine ethanol plant generating interest from U.S., Asia

Livestock feed byproducts from the new ethanol plant at Belle Plaine should have a ready market buying at premium prices, according to the company's president.
The plant will have capacity to produce 150,000 litres of ethanol and 165,000 tonnes of dry distillate grain feed byproduct annually.
"We have interest from the U.S. and Asia to replace dry distillate from corn ethanol," Tim LaFrance told a speaker's corner session at Agribition Tuesday.
"That speaks volumes when users want to replace corn product with wheat ethanol."
The Terra Grain Fuels ethanol plant decided from day one to use wheat only while all other big Canadian plants use ethanol and corn, he said.
The company is building a brand, Premium Terra Grain Fuels Distillate, using the unique qualities of the feed product.
"Buyers want reliability and consistency. They haven't been able to get that from other ethanol producers."
Having 90 per cent of contracted grain coming from the AC Andrew wheat variety, which was especially developed for ethanol use, provides a consistent quality grain distillate, he said.
Wheat-based ethanol distillate has a significant nutritional advantage over corn-based ethanol.
Corn distillate averaged 31 per cent protein while wheat distillate averages 39.7 per cent protein and has higher levels of lysine for digestibility and more trace minerals.
The dairy industry prefers dry grain distillate for better milk production and potential exists for use in the swine and poultry industry, said LaFrance.
The province produces 10 million tonnes of feed grains annually, so the Terra Grain Fuels production is relatively small. "We expect 98 per cent of our distillate will be sold out-of-province."
When grain prices jumped this year some of the 400 producers who had contracted to deliver grain at $140 a tonne called.
Most were satisfied when Terra explained it would still pay $140 if the spot price fell to $100, he said.
Besides, higher yields on ethanol wheat varieties compensated for the fixed prices.
Regina district farmer Reg Gross usually averages 35 bushels per acre with milling wheat.
"We got 65 bushels an acre with the ethanol variety," said Gross. "In some low places the monitor showed 110 bushels.
"If we'd have had rain it would have run 75 bushels."
LaFrance said the ethanol side of the plant remains viable at recent discounted prices, partly because the distillates are high quality.
Terra will use 15 million bushels of wheat annually.
The plant started accepting grain deliveries in August and will be fully commissioned by April, with production ramping up in the first quarter of 2008.

Ron Walter can be reached at 691-1264.