Alternative Energy Sources to Build Ethanol Plant in Iowa
August 15, 2006
KANSAS CITY, MO., Aug. 15, 2006/PRNewswire-FirstCall/Alternative Energy Sources Inc. (OTC Bulletin Board: AENS.OB), a Kansas City-based company, today announced plans to build a 110-million-gallon ethanol plant in Boone County, Iowa, between Ogden and Beaver in the central part of the state.
The plant will be adjacent to a railroad line. We have had a very strong relationship with the Union Pacific Railroad for almost 20 years, and look forward to capitalizing on 100-car unit train ethanol and dried distillers grains capabilities while optimizing supply-chain efficiencies, said Mark Beemer, president and CEO. Beemer, a native of Webster City, Iowa, is a former vice president of Archer Daniels Midlands Grain Division, the nations No. 1 ethanol producer.
The permitting process will begin with the Iowa Department of Natural Resources, and the company has secured options to buy 625 acres from five landowners. “The large footprint will provide AENS great flexibility in plant design, allowing us to build significant rail infrastructure to accommodate the high-density Union Pacific mainline,” Beemer stated.
“We plan to start construction in six to nine months and have the plant in operation by fall 2008,” added Lee Blank, chief operating officer. Lee is from Garner, Iowa, and is also a former ADM executive.
Once in operation, the plant will create jobs for 45 to 55 people with payroll between $2.5 and $3.5 million. Due to the flexibility of the Union Pacific franchise, the ethanol can be shipped to a multitude of destination markets, allowing AENS ethanol and DDG market arbitrage opportunities. The facility will be shipping approximately one unit-train per week.
The company also plans to build additional plants in the Midwest with each plant expected to produce nearly 100 carloads of ethanol per week. Beemer said this is the first plant for AENS.
About Alternative Energy Sources Inc.: Formed on June 12, 2006, Alternative Energy Sources is engaged in the development of “greenfield” sites, including constructing, owning and operating fuel-grade ethanol plants. Management team executives Mark Beemer, CEO, and Lee Blank, COO, have experience in agricultural processing, grain trading, railroad negotiations, logistical economics and acquisitions. Both have extensive management and leadership experience, including serving in executive management positions with agri-processing giant Archer Daniels Midland Co., the largest producer of ethanol. Through their cumulative 37-year careers, they have navigated businesses through three droughts, used extensive hedging and risk-management strategies, focused on efficient rail and barge transportation modes, and managed a host of grain elevators and agricultural processing facilities throughout the Midwest. Blank commented, "We intend to develop the most comprehensive ethanol manufacturing leadership team, including all areas of ethanol sales, dried distillers grains (DDG) merchandising, natural gas merchandising, plant operations and transportation/logistical consolidation." For more information go to www.aensi.com.
Forward-Looking Statements: This news release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, including without limitation those statements regarding the company’s ability to exploit ethanol development and production opportunities. These statements are expressed in good faith and based upon a reasonable basis when made, but there can be no assurance that these expectations will be achieved or accomplished. Although the forward-looking statements in this release reflect the good faith judgment of management, forward-looking statements are inherently subject to known and unknown risks and uncertainties that may cause actual results to be materially different from those discussed in these forward-looking statements including, but not limited to, our inability to secure or generate sufficient operating cash flow to adequately maintain our generating facilities and service our debt, commodity pricing, intense competition for undervalued generating assets, environmental risks and general economic conditions. Readers are urged not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. We assume no obligation to update any forward-looking statements in order to reflect any event or circumstance that may arise after the date of this release, other than as may be required by applicable law or regulation.