Biodiesel plant receives regulatory approval

by S-T Staff

The Securities and Exchange Commission gave regulatory approval June 9 for the nation’s first interstate biodiesel plant, which will be located near Lamoni.

Southern Iowa BioEnergy, LLC, announced Friday it received the go-ahead to begin its equity drive to raise funds to construct a 30-million gallon continuous-flow biodiesel plant east of Lamoni. The public announcement and launch of the equity drive will be June 21 in Lamoni.

 

The board of directors of Southern Iowa BioEnergy will hold announcement meeting at 11 a.m. at Graceland University, said Bill Higdon, chairman of the board. Investor information meetings will begin on June 21. A meeting is planned for Osceola on June 21 at 7 p.m. at American State Bank. SIBE is open to investors from Iowa, Missouri, Illinois, Kansas and Alaska.

 

“Our project differs from others, because we are open to investors from multiple states,” said Higdon.

 

Clarke County Supervisor Jack Cooley sits on the eight-person Southern Iowa BioEnergy board.

 

The proposed plant would create 30 to 50 new jobs. Some of those jobs could end up in Clarke County at the rail site in Osceola. The SIBE secured the site in October when it acquired the property from Jack and Rosemary Cooley and Jane and Dave Redman.

 

SIBE board member Bill Morain said the proposed plant is environmentally friendly. The plant plans to use vegetable oils, primarily soybean oil and animal fats, to manufacture biodiesel which meets the ASTM D 6751 quality standards required by major engine manufacturers.

 

If the plant comes to fruition and continues to grow, scores of trucks hauling the biodiesel product could deliver it to the rail spur located on Highway 69, near the old Highway Lumber building.

 

Initially, board members say it is more cost-effective to deliver the biodiesel by semi-truck than rail if it is being shipped in the 300-mile radius.