Using the slogan, “Energy from the Midwest, not the Mideast,” a group of farmers, ag-related professionals and investors have developed a $126 million ethanol plant near Fergus Falls.
Otter Tail Ag Enterprises, LLC, received a $20 million allocation of New Markets Tax Credits from MMCDC for financing of facility construction.
The plant produces 55 million gallons of ethanol annually, requiring 57,000 bushels of corn arriving daily in a total of 57 truckloads or 21 rail cars. In addition to ethanol production, the plant produces 21 truckloads or six rail cars per day of a byproduct used in livestock feed. Resulting job creation is at 36 plant employees and hundreds more working in agriculture, transportation, utility, maintenance and related industries.
Total annual economic impact to the area is a projected $110 million. This includes in excess of $65 million in direct spending annually, added income to area farmers, and an expanded state and local tax base of $1.2 million.
According to the Department of Energy’s Energy Efficiency and Renewable Energy site, new corn ethanol plants produce an energy output to input ratio of 1.6, including the energy used in producing corn and other raw materials.