Jan. 24, 2008 --
-- NEWS RELEASE –
Moberly Biodiesel Project On Schedule To Meet Critical Deadlines
Equity Drive nears successful completion
(Moberly MO) – Timing is critical for the proposed biodiesel production plant in Randolph County, but according to officials with the project, two of the major hurdles are near completion. Producers’ Choice Soy Energy LLC expects to begin construction in early March on a $15-million biodiesel plant and soybean crush facility in Moberly. When completed, the plant will join the U.S. energy network of providing renewable fuels in the ongoing effort to reduce our dependence on foreign oil.
Prior to the construction phase, however, the financing has to be place. According to board chair Jim Beckley of Clarence, the components of the financing are nearly complete. The equity drive, which started less than three months ago, has raised nearly enough equity to allow the company to finalize its debt financing. "The discussions we have had with our finance partners have been very encouraging," said Beckley. "Because our project includes both biodiesel production and soy crushing, lenders have expressed strong interest. We hope to have debt financing finalized as early as next month."
As the equity drive approaches its goal, though, there’s still work to be done. PCSE Board Treasurer Matt Brownfield, of Moberly, says the final available shares should go quickly. “People involved with these types of projects talk about the stages of the drive,” Brownfield stated. “The early investors want to see a project get some solid footing. Then potential investors tend to wait and see how quickly it progresses. Now, we’re at the stage where people call and want to know if there’s still time.”
According to Brownfield, speaking on behalf of the Board, “If someone wants to be a part of a sound renewable fuels project like Producers’ Choice, they need to step forward now.”
If the current investor pace continues, the drive should be concluded within two weeks. Concurrently, the debt financing negotiations should be finalized and ready to sign by the end of February. That moves the project into the construction phase in March, allowing the plant to begin producing biodiesel by no later than March 2009.
The March 2009 deadline for converting soy oil to biodiesel must be met in order for Producers’ Choice to receive the critical 30-cent a gallon incentive from the Missouri Department of Agriculture. The management team at Process Concepts of Pevely MO, the plant construction company, indicates the facility can be built in a ten-to-eleven month timeframe.
In addition to the MDA incentive, PCSE was also awarded a $100,000 USDA Rural Development Value-added producers grant to help with start-up expenses and a Quality Jobs grant totaling $233,000. Producers’ Choice will create 18-22 new jobs once the plant is in operation.
Of importance to farmers, the state of Missouri has awarded this project $1.5-million in Missouri income tax credits. The Missouri New Generation Entity Producer Investment Tax Credits will be shared by the qualifying farmers investing in the Producers’ Choice.
One other key to the success of the Equity Drive has been frequent mention of mandates for biodiesel production at both the federal and state level. Greg Walker, of Moberly, has spearheaded the series of informational meetings around the area and throughout north Missouri. “Our timing has been good telling potential investors about PCSE,” Walked noted. “Renewable fuels play a major role in the U.S. energy dependence strategy. Farmer investors like being a part of this plan and so do people looking for ways to be “green on energy”. Citing recent news developments related to biodiesel, Walker said “The U.S. production of biodiesel was less than 450-million gallons last year. The latest version of the federal energy bill calls for production to increase to 1-billion gallon by 2012.
Producers’ Choice will initially generate 5 mgy (million gallons per year). However, the facility is being designed to accommodate expansion to up to 30 mgy, as the biodiesel market matures and strengthens. The plant, when completed, will be built on a 14-acre tract north of the Dura Automotive Plant in north Moberly. PCSE is proud to create new jobs and a stronger market for soybean producers in the nine-county region surrounding Randolph County.
If interested in purchasing some of the few remaining shares in Producers’ Choice Soy Energy LLC, contact the company at (660) 263-2777.
- News Release -
Moberly Biodiesel Plant Qualifies for State Incentives
Producers’ Choice Project Meets Critical Deadline
Moberly, MO – Producers’ Choice Soy Energy LLC announced Wednesday that it has qualified for a 30-cent a gallon incentive for the biodiesel it will be producing at its new plant in Randolph County. The company received confirmation from the Missouri Department of Agriculture that it had successfully met the qualifications for the production incentive prior to the program’s November 1st deadline.
The $15-million biodiesel and soybean crushing facility will be located in Moberly, with construction tentatively scheduled to start early next year. The operation will produce 5-million gallons of biodiesel annually in its initial phase.
PCSE management has been working at a fast pace to meet the November 1st deadline set by the state legislature earlier this year. Producers’ Choice had to meet specific requirements in order to qualify for the incentives. In addition to being a company that has a majority ownership stake by Missouri agricultural producers, the proposed plant had to be “under construction” by November 1, 2007. That consideration was met with the signing of a construction contract between PCSE and Process Concepts of Pevely, Missouri last week.
PCSE Project Manager Deanne Hackman received confirmation of the incentive approval from the MDA on Wednesday.
“This is great news for Producers’ Choice and for farmers in the region,” said Hackman from her Moberly office. “A lot of work has gone into meeting this deadline, and now we’re ready to move forward with the $8.0-million equity drive to bring an environmentally sound biodiesel project to north Missouri.”
The PCSE Board Chairman, Jim Beckley of Clarence echoed the good news for the region’s soybean producers. “During our meetings with producers and prospective investors, we knew the 30-cent state incentive was critical to the success of the business plan. Now that we have qualified for these incentives, the excitement about using north Missouri soybeans to reduce our dependence on foreign oil continues to build.”
The Missouri Qualified Biodiesel Producer Incentive Fund was established in 2002 to encourage production of the renewable fuel source in the state. Any production facility that is at least 51 per cent owned by Missouri agriculture producers and deemed under construction by November 1st of this year, is eligible for the program.
The payoff is significant. For Producers’ Choice, the project expects to produce 5-million gallon of biodiesel in the first years of operation. The incentive equates to $1.5-million in revenue from the state. PCSE is designing its crush and biodiesel facility for expansion as demand expands. The state funded program pays the 30-cent incentive on the first 15-million gallons produced and ten cents on each of the next 15-million gallons. Qualifying plants can benefit from the incentive for a total of sixty months.
Producers’ Choice Soy Energy is currently conducting its Equity Drive, with a goal of $8.0-million in equity from individual investors. The balance of the financing will come from traditional lending institutions. One other provision of the MDA program is for the operation to be producing biodiesel by March 2009.
An Equity Drive meeting will be in Moberly at the Best Western Inn on Monday, November 5th, starting at 7:30 p.m. The meeting is open to the public. Other meetings will be held in Columbia and Fayette in mid-November.