04/23/08 Renova seeks money for Idaho ethanol plant completion

Renova Energy has until May 19th to secure the financing to complete work on a Heyburn ethanol plant. Operations at Heyburn ceased last December because of budget overruns. Renova Chairman Chris Thomas says this isn't the best time to be borrowing money. THOMAS "The state of uncertainty in the capital markets, the credit crunch and the availability of cash from the banks that is obviously having an impact on the finance ability of any project and coupled with that the ethanol industry in the US is having a difficult time with a sea of adverse publicity going against it." British-based Renova needs to cover a 13 million dollar shortfall on the 53 million dollar project. Thomas says the plant will still be economically viable even with the high price of corn. THOMAS "The reality is and a lot of people don't see it is that the margins from ethanol production right now are better than they were two or three years ago." Thomas is back in London after meeting in Heyburn last week with contractors and subcontractors who were building the plant. He's tried to convince them to standby until the May 19th funding deadline. Between now and then Thomas says their main focus is getting a bank or lender to loan them the money they need to finish construction. Today's Idaho Ag News Bill Scott