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Illini Bio-Energy hosts first meeting
for future ethanol plant
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[JAN. 10, 2005]
Lincoln is the site of the
first public meeting explaining the sale of shares in a coal-fired
ethanol production plant. The meeting is at 7 tonight (Monday, Jan.
10) at the Knights of Columbus Hall.
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Illini Bio-Energy, an Illinois
cooperative association, announced the beginning of the sale of
shares of its stock. The proceeds will be used to develop and
construct an ethanol production facility near Lincoln, at a total
estimated cost of $96 million.
"This is a very special day for us,"
said Ernie Moody, president of IBE. "After almost three years of
planning and research, IBE will now begin to offer shares of stock
for sale to agricultural producers, landowners who crop share with
producers and other similar investors."
The meeting in Lincoln is the first
of more than 72 investor meetings in 71 towns in central Illinois.
The proposed facility will be
designed to produce over 50 million gallons of fuel ethanol per year
and is expected to require over 18 million bushels of corn annually
to meet this production level. This grain requirement represents the
yield from at least 100,000 acres of corn. Illinois corn producers
should see a positive economic effect from this facility.
"Today's announcement that we are
starting the sale of stock for this facility is the best news
farmers in central Illinois have heard in a long time," Moody said.
"It should be a great opportunity for producer/investors, and we are
also very proud to be involved in a renewable fuels project that
will help our country reduce our dependence on foreign oil,
especially with the current state of international affairs.
"The facility will take
approximately 16 months to build after financing is complete and
will employ about 38 individuals, with an annual payroll, including
benefits, of about $1.9 million."
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Coal will be used as the primary
source of energy for the facility.
IBE expects it will need to raise a
minimum of $30 million through the sale of shares in the offering in
order to secure the debt financing needed to complete construction
and startup of the facility.
The share price is $2 per share if
purchased on or before March 15, with a minimum purchase requirement
of 10,000 shares. The share price after March 15 is $2.20 per share.
Meetings will be conducted
throughout a 22-county area in central Illinois. Dates and times of
the meetings will be advertised locally. Anyone with questions can
call IBE toll-free at 1 (866) 455-3864 or locally at (217) 726-9523.
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