SAN JOSE --
Taloma Farmers Grain Co., a grain cooperative based in Delavan,
announced that American Ethanol Inc. has secured an option to
purchase approximately 105 acres of land adjoining Taloma's Allen
Station train loading facility. This facility is located on U.S. 136
about one mile west of San Jose.
American Ethanol plans to construct and operate an ethanol plant
that will produce up to 100 million gallons of ethanol annually.
Construction of the plant would start as soon as all required
permits are completed. The company is expected to employ
approximately 45-50 employees to operate the plant.
Once the plant
is fully operational, it will require approximately 40 million
bushels corn annually. Taloma's Allen Station facility will serve as
the supplier of corn to the plant.
Fred Reeves, general manager of Taloma, stated that a Taloma
subsidiary called Allen Energy LLC is in negotiations with American
Ethanol to purchase all the corn for the plant from Taloma,
surrounding cooperative elevators and private grain companies.
Farmers in the surrounding areas can expect to see a higher price
for their corn.
"We're excited," Reeves said. "We believe this will be good for
all the farmers in the surrounding area. We're looking at the
future, and the future is about ethanol." The move to more ethanol
should help with our problems in the Middle East, he said.
The grain company owns three other elevators in the area: New
Holland, Brownwood, Delevan. Grain is typically shipped from Allen
Station to Arkansas and Texas.
Scott England, Illinois regional
operations spokesman for American Ethanol, said that the company has
just closed on its option to buy the property. The company is ready
to begin researching the site for suitability. They will go before
the Mason County Board to request property rezoning.
The company has set its goal to be producing 2 billion gallons
ethanol by year 2011. That's 20 plants producing 100 million gallons