A feasibility study shows that there is more than enough corn in the area to serve this ethanol plant, plus existing plants.

By RAHN LARSON

Now that the funds are in place for the Heron Lake Bioenergy plant, the focus has shifted to the finer details.

And while the board has prided itself in doing solid planning and homework, things are starting to get tight, in terms of time frame.

If the permitting process goes smoothly, crews could begin ground work for the new plant as early as April 15. That means actual construction could begin in June.

Chairman Bob Ferguson said all of this adds up to a a full plate and a short window for the Heron Lake Bioenergy board.

New committees

Last Friday’s all-day board meeting offered a hint as to what the coming months have in store. It brought forth business items such as: a feasibility regarding the area’s corn supply; an update on permitting; an interview with a risk management firm; an interview with a major lender; and an interview with an employment recruiting firm.

In order to tackle all of these things, the board will meet every two weeks. Also, Ferguson will begin appointing subcommittees. Three that he listed are: finance; accounting; and risk management/employment.

In addition, Ferguson and Board Member Milt McKeown said the board will make every effort to stay on top of the ever-changing ethanol industry. So when key conferences are held around the country, Bioenergy board members will be there.

What’s more, the board is keeping a close eye on two key transportation issues — coal and the Highway 60 expansion. The new plant will be built a mile northwest of Heron Lake, just off Highway 60 and the Union Pacific railroad line.

Because this will be a coal-fired plant, coal delivery will be crucial.

Ferguson said the board is exploring the possibility of a "transload facility," meaning a regional site where coal can be unloaded and stored. From there, it can be more quickly accessed via rail or truck by regional users, such as Heron Lake Bioenergy.

Although this idea is in its infancy, Heron Lake officials are working closely with Fagen/ICM and with an energy specialist firm called NRG Thermal on the possibility of co-owning such a facility.

Meanwhile, McKeown, Ferguson and others are keenly interested in the possible completion of the diagonal four-lane that stretches from Omaha to the Twin Cities. Plans are for the Iowa section of the four-lane to be completed by 2007. At that point, the only remaining two-lane areas will be a seven-mile stretch from Worthington to the Iowa border and a 26-mile stretch from Windom to St. James.

Ferguson said the project is getting heavy support from the growing corridor of agricultural industries and businesses in Southwest Minnesota. A key meeting on this subject is set for noon on Jan. 28 at the Guardian Inn of Windom.

Meanwhile, McKeown and Ferguson are pleased with the progress of the Bioenergy project.

"It is on schedule and we seem to be on the front edge of it," Ferguson said. "Also, the MPCA (Minnesota Pollution Control Agency) is on schedule to meet its most recent timeline."

McKeown added: "I am comfortable that we, as a board, have done what we need to do in anticipation of all of these issues. Of course we still have a lot to do, but much of it is driven by permit issues. At this point, we define our progress by the permitting process."