Headwaters Incorporated to Expand Alternative Fuels Position with North Dakota Ethanol Project
biz.yahoo.com
Monday March 14, 3:06 pm ET
SOUTH JORDAN, Utah--(BUSINESS WIRE)--March 14, 2005--Headwaters Incorporated announced today that it has completed a non-binding Memorandum of Understanding ("MOU") with Great River Energy to construct and operate a 50 million gallon per year ethanol production facility in North Dakota.
The state-of-the-art facility would be located on land adjacent to GRE's Coal Creek power plant near Underwood, N.D. Headwaters and GRE hope to complete negotiations of a definitive agreement, obtain board approval, project financing and other conditions, and commence construction by fall of 2005 with operations commencing in fall of 2006.
Headwaters would own a majority of the facility and provide construction and plant management services. GRE would be a minority owner and service provider.
"By co-locating at Coal Creek Station, we are able to take advantage of waste steam from the power plant. This eliminates the need to build a boiler and reduces the overall cost of the ethanol plant," said Kirk Benson, Headwaters chairman and CEO. "Our goal is to enter the ethanol market with a significant facility that is a low-cost producer in the industry."
Benson continued, "Ethanol production offers attractive synergies for the company's energy business. Headwaters is already a leading supplier of pre-combustion and post-combustion services to coal-based electric utilities nationwide. Advantages related to co-locating ethanol production with power plants could be substantial.
"Furthermore, Headwaters is a leading provider of technologies for converting coal to clean-burning liquid fuels. As we move our coal-to-liquids program forward in the United States, access to alternative fuels markets will be important. A position in the existing ethanol industry will help us build our alternative fuels capabilities."
Benson further stated, "Headwaters and GRE have enjoyed a long and productive working relationship. Headwaters markets coal fly ash produced at the Coal Creek power plant under a long-term contract with GRE. Headwaters and GRE are also cooperating on the commercialization of FlexCrete aerated concrete developed by Headwaters and a coal drying technology developed by GRE." |
