Bio-Diesel Proposal Raises Corny Questions

By Sarah Brubeck

VERMILLION, S.D. – A proposal to build a bio-diesel plant here has some citizens curious about the plant’s cost, location and any possible environmental effects.

Rural Energy Marketing, L.L.C, a company from Luverne, Minn., has held four meetings in southeastern South Dakota over the last two months to explain plans for a biodiesel plant. Estimates of the cost of the plant are between $80 million and $90 million, but that price continues to increase, said Loren Forrest, operating manager for the plant. The group has hosted meetings in Vermillion, Yankton, Elk Point and North Sioux City.

“A lot of the concern is carbon dioxide going into the atmosphere,” said Jack Powell, a retired professor at the University of South Dakota who taught quantitative business analysis and is president of the Vermillion City Council. “One of the complaints is the corn-based ones they have now puts more carbon dioxide in the air. This one claims their process captures it.”

The proposed plant, if built in Vermillion, would be located northwest of town on the north side of Highway 50, Forrest said. It will break down corn stalks into carbon monoxide and hydrogen. After going through a clean-up phase in which impurities are taken out, the material goes through processes that use rare metals such as iron and cobalt to convert the gases into a liquid, mostly diesel fuel, Forrest said.

“We’re just here to inform the public so they can be pro or con,” Forrest said. “This is what America needs more than anything.”

Forrest started Rural Energy Marketing in 2004 intending to produce ethanol. But then Forrest heard about the thermal chemical processing at a biomass conference in Minneapolis and changed his focus to biodiesel. He was former project coordinator for an ethanol plant at the Heron Lake BioEnergy refinery before leaving that project for REM.

According to an REM Powerpoint presentation on the company’s Web site, between 60,000 to 70,000 acres of contracted corn stalks will be needed to run the plant, which will consume 400 to 500 tons per day. This will allow the plant to produce between 14-17.5 million gallons of diesel fuel each year.

“I think it holds a lot of promise,” said Powell, the Vermillion City Council president. “It seems to me we’d be taking another step to renewable energy. Right now, I don’t know what they’d do with corn stalk and if it would be a new, safer process.”

Others aren’t so sure about the proposal.

“I think it’s extremely dangerous to use good farm land to feed our cars rather than our stomachs,” said Dean Spader, a retired criminal justice professor at USD. “I think we should use rich soil to make food than to create fuel.”

Spader was raised on a farm and currently lives on 2 1/2 acres on the east side of Vermillion. During the June 3 election regarding a proposed $10 billion oil refinery for neighboring Union County, Spader paid attention and attended meetings. Union County residents voted in favor of the refinery, 58-42 percent. Hyperion, a Dallas-based company, has proposed a refinery that will process 400,000 barrels of oil each day.

“If there’s one thing that really disappointed me about that project was that many of our leaders made a decision before getting all the facts,” Spader said. “I hope people of this community listen to both sides before making a decision.”

Powell questioned the accuracy of the cost figures Rural Energy Marketing presented at the meeting he attended, but believes the project is worthwhile.

“If you could convince people of that nature that this is an environment-safe process, then I think you could prevent the kind of disagreement like Hyperion,” Powell said.

“Hyperion is bringing oil from Canada with a pipeline and taking that crude oil and turning it into fuel for things like airplanes. Part of the concern there is pollutants are going in the air, and this is suppose to prevent it. They are talking about several of these in the area.”

Spader believes a bio-diesel plant would help Clay County’s economy, but he said the economy is not the only factor to consider.

“I always make decisions based on good and bad development,” Spader said. “I like to look at short term economic and long term environmental.”

Spader also stressed that the price of corn is at an all time high. Corn is $8 a bushel and that shows the risk of using more land for fuel instead of using it for food. The amount of cropland available in the last 50 years for each individual has shrunk from half an acre per person to one-fourth an acre per person, Spader said.

Many people in Vermillion area are still unfamiliar with the project.

When e-mailed, few Vermilion city council members had heard of the project and those that did said they knew little about it. Mayor Dan Christopherson declined to comment saying he didn’t know enough about the proposal.

“I’m still learning,” Powell said. “If what they say is true, it’s economic and environmentally safe. Why would people be against it? You’re taking a bi-product that has no use and making something out of it.”

When asked if he thinks more people should educate themselves about this, Powell said, “Absolutely, otherwise you operate from ignorance. Some people would rather not know. I absolutely agree people should learn as much as they can about this.”