Ad-Express and Daily Iowegian, Centerville, IA

Local News

September 12, 2007

Push for biodiesel processing plant in Centerville on hold

Jim Senior, president of the recently created Appanoose Biofuels, LLC, a renewable energy company, says efforts to build a biodiesel plant in Centerville are “hibernating.”

Senior said a recent feasibility study was not overly positive or negative, but the recent surge in soybean prices would greatly affect the profitability of such a facility.

A group of area business leaders formed the company in 2006 and visited three active plants and one under development. They also reviewed the securities prospectus of several plants proposed in Iowa and Missouri.

Based on their research, Appanoose Biofuels commissioned a feasibility study to determine the potential for the project.

Senior said the idea is not comletely dead. New innovations in the industry using other plant material, he said, could breathe life back into the effort - or soybean prices could come down again.

Since such a facility would rely heavily on rail transportation, area business leaders looked at it as not only offering new jobs, but as a way to keep the Appanoose County Community Railroad viable.

Senior added that his group is still looking at creating a bean crushing plant. After the squeezing of soy bean oil, which is used in the biodiesel production process, the resulting gluten can be sold as a high-protein livestock feed.

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So, the question this week is, “Will it stay or will it go?” The United States Department of Agriculture in Washington, D.C. wants to close three Farm Service Agency offices in southern Iowa, which includes the FSA office in Centerville, and consolidate the operations in order to save money. Tuesday afternoon a meeting was held at Faith United Methodist Church to allow farmers and other producers who use the Centerville FSA office to make comments about the closing to John R. Whitaker, state executive director Iowa FSA. Many questioned if the meeting Tuesday was necessary because the decision had already been made.

A. Yes, because Washington will listen.
B. No, because the decision to close the Appanoose County FSA office has already been made.
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