DuPont Danisco to Build Cellulosic Ethanol Plant in Nevada, Iowa

DuPont Danisco Cellulosic Ethanol LLC is planning to build a commercial-scale cellulosic ethanol plant in Nevada, Iowa. The plant will be the next generation in ethanol production, using stover, which consists of the corn cobs, stalks, and leaves left in the field after corn harvesting. As reported by Agri Marketing in June 2011, DuPont Danisco has entered into an agreement to purchase land adjacent to the Lincolnway Energy conventional ethanol plant.

As quoted in the news release published in Agri Marketing, DuPont Danisco's CEO, Joe Skurla points out that the company's process is designed to use cellulosic biomass from a variety of sources including wheat and corn stover and switchgrass. The company is currently producing cellulosic ethanol successfully in a pre-commercial plant in Vonore, Tennessee.

As reported in Hay and Forage Grower, in preparation for the plant's construction and start-up of production in 2013, DuPont Danisco is working with local farmers to obtain commitments to be able to collect stover from Iowa fields in the fall of 2011 to build up the biomass feedstock for the plant. And the company is working with Pioneer Hi-Bred and the Iowa State University to establish best practices and ensure the agronomic and environmental integrity of the cornfields.

The DuPont Danisco cellulosic ethanol plant in Nevada will join a similar plant being built by POET in Emmetsburg, Iowa, in addition to 40 other corn ethanol plants in the states. Jennifer Hutchins, spokesperson for DuPont Danisco, quoted in an article by Lynn Hicks for the Des Moines Register, indicated that the plant will take twelve to eighteen months to build, and that the plant will employ about 60 people when it is operational.

Hicks reports that the Iowa Power Fund Board approved a $9 million grant for the project in February, and that documents filed with the state indicate a total investment of $275.5 million. The project is expected to receive $8.7 million in tax abatements from Nevada, Iowa over 10 years. And the Iowa Department of Economic Development will provide $4.6 million in tax credits and $586,000 in job training assistance.

The Nevada Economic Development Council welcomed DuPont Danisco's decision to purchase the site for its cellulosic ethanol plant, indicating that renewable energy is one of several industries targeted for Nevada's development. According to the Council, the success of the Lincolnway Energy ethanol plant served to attract DuPont Danisco as well as future bio projects to the community.

The strategic location of the site, close to transportation, and other resources in the area contributed to DuPont Danisco's decision, according to the Nevada Economic Development Council. These resources include the Biomass Energy Conversion Center in Nevada's West Industrial Park, the Iowa State University Plant Sciences Institute and New Century Farm, and the productive agricultural community in the Nevada area.

Sources:

Cellulosic Ethanol Company Picks Iowa Plant Location, Hay and Forage Grower

DuPont Danisco Cellulosic Ethanol LLC

DuPont Danisco Cellulosic Ethanol Acquires Land to Build Biorefinery in Iowa, Agri Marketing

Lynn Hicks, DuPont to build cellulosic ethanol plant at Nevada, Des Moines Register