06/07/05 Reality check for biofuel development

Canadian based Iogen wants to build a 50 million gallon ethanol refinery near Idaho Falls. Ethanol producer Jim Glancey says he'd like to see it built but there are many unanswered questions in his mind. First and foremost is the cost of the plant, an estimated 350 million dollars. GLANCEY "That means seven dollars per annualized gallon capital cost whereas an average ethanol plant like a dry mill plant is less than a buck and a half. The other is the operational cost to produce it. They still hadn't given any figures out on that. To be competitive they basically need to be somewhere down to close to a dollar." Iogen has commitments from farmers for half of wheat and barley straw they'd need to feed the refinery. GLANCEY "How do you collect this and how do you deliver it. Some farmers can do that, some can't." And since it all comes off at one time of year Glancey wonders where the 700 thousand tons of straw would be stored. No one will loan the money to build the plant without a guarantee which Iogen is seeking from both the US and Canadian governments. GLANCEY "For a plant that size and that amount is one that has to be signed by the President if it comes to the US side." With today's gasoline prices it's easy to understand why so many are talking about using more agricultural products to produce energy. Today's Idaho Ag News Bill Scott