Developing an Ethanol Facility
Frank
Kirschenheiter
Why
?????
Increase value of agricultural products
Diversify an existing business
Economic development for a community
Energy independence
Clean Air
Ethanol's Cinderella Story
One of the fastest growing
industries in the world
Experts say demand will
outpace productions for ?????
Jan 2003, 68 plants with 11
under construction: 2.7 B gal/year production
Today 95 plants with 31 under
construction 4.3 B gal/year production
Bipartisan Support for the
Industry
Heres How.
Business
Expansion
43
of 126 facilities operating and under construction today.
Farmer
Co-op
49
of 126 facilities operating and under construction today.
Forming a
New LLC
34
of 126 facilities operating and under construction today.
Business Expansion
Company or
group of companies form a new company to produce alcohol
Grain
Company- Private or Co-op
Energy
Company
Any Large
Corporation
One word SIMPLE! Key
factors are in place they just
move forward in a new
venture
Farmer Co-op
Management
in place???
Capital in
place???
Grain
in place???
If co-op is strong in ALL of these
then it is much like the Business Expansion.
SIMPLE!
New LLC
What it takes
Leadership-
n 1: the activity of leading; 2: the body of people who lead a group; 3: the
status of a leader; 4: the ability to lead;
Persistence-n
1: the property of a continuous and connected period of time 2: persistent
determination 3: the act of persisting or persevering; continuing or repeating
behavior;
Commitment
n 1: the trait of sincere and steadfast fixity of purpose; 2:
the act of binding yourself (intellectually or emotionally) to a course of
action; 3: an engagement by contract involving financial obligation; 4: a
message that makes a pledge
Cooperation-n
1: joint operation or action; 2: the practice of cooperating
New LLC cont.
What it takes
Thorough-adj.1:
painstakingly careful and accurate; 2: very thorough; exhaustively complete
Prosperity-n
1: an economic state of growth with rising profits and full employment 2: the
condition of prospering
Risk-n
1: a source of danger; a possibility of incurring loss or misfortune; 2: a
venture undertaken without regard to possible loss or injury; 3: the
probability of becoming infected given that exposure to an infectious agent has
occurred 4: the probability of being exposed to an infectious agent v 1: expose
to a chance of loss or damage; 2: take a risk in the hope of a favorable
outcome.
What it takes
Leadership
Persistence
Commitment
Cooperation
Thorough
Prosperity
Risk
Still Want to GO?
Do
you have well-respected individuals who will step up to lead the project?
Do
you have broad based community support?
City,
County, State/Province
Do
you have political support for the project?
City,
County, State/Province
What
do you have?
Adequate
water, fuel source, electrical services, feedstock
Is
there adequate rail and truck service?
Is
there appropriate real estate?
Can
you raise the Capital?
GO !!!
Form your
management group!
Get a feasibility study and business
plan!
Form your alliances!
STOP !
Dont
try to fit a square peg in a round hole.
Millions
of dollars have been spend pursing projects that should never have been
pursued, and would have failed had they been pursued and built.
Again Why?
Current markets allow very acceptable
returns
Industry growth is inflating, the value of
ethanol stocks/membership units
Bipartisan Support of the 2005 Energy Bill
increases ethanol demand
Will it Last Forever?
No???
How long
has the energy industry been profitable?
Frank Kirschenheiter
charmark@ndsupernet.com
Toll Free:1-866-752-2692
Office:
1-701-974-3288
Cell:
1-701-290-3953