Coleman announces $740,000 for Minnesota¹s 17th ethanol plant

St. Paul, MN - Senator Norm Coleman today announced that Federated Rural Electric Association will receive a $740,000 loan from the Rural Economic Development Loan program. Federated Rural Electric Association will use this funding to finance the purchase of equipment for the Heron Lake BioEnergy facility, a new 50-million gallon per year ethanol plant to be located Heron Lake, Minnesota. Expected to create dozens of jobs, Heron Lake BioEnergy will become Minnesota¹s 17th ethanol plant.

³I am pleased to announce the Federated Rural Electric Association will receive this important funding, which will bring our nation one step closer to producing energy in America's fields instead importing fuel from foreign deserts,² said Coleman. ³Producing over 325 million gallons of ethanol annually, Minnesota farm families are now on the cusp of fueling a nation.
This plant will add to that amount, as well as help to generate new jobs in Southwestern Minnesota. I applaud the Administration for recognizing ethanol as a viable solution to our nation¹s energy woes and Minnesota¹s ability to lead the charge for renewable fuels.²

Today, nearly all of Minnesota¹s 2.6 billion gallons of gasoline are blended with 10 percent ethanol. Minnesota currently boasts 16 ethanol plants, which are owned by Minnesota farm families. Besides producing over
325 million gallons of ethanol per year, these plants produce some 40,000 jobs, over a half billion dollars a year in economic activity and $15 million in tax revenues.

The USDA Rural Development¹s mission is to help rural individuals, communities and businesses obtain the financial and technical assistance needed to address their diverse and unique needs. Rural Development works to make sure that rural citizens can participate fully in the global economy and has an $86 billion dollar portfolio of loans. Rural Development will administer nearly $16 billion in program loans, loan guarantees, and grants through their various programs.

Since 2001, USDA Rural Development has invested over $2 billion throughout Minnesota for a variety of rural economic development projects.