By Jolene Farley
Beaver Creek farmer LeRoy Kellenberger is at the forefront of efforts to establish a 20-million-gallon soydiesel refinery near Brewster.
Kellenberger became director of the Minnesota Soybean Processors in the early stages of the project when he agreed to help his friend (now MNSP president) Robert Kirchner, Brewster, with the equity drive for the processing plant.
"I started helping him out on the equity drive and ran for the board," said Kellenberger.
The plant will cost around $55 million to construct, with refinery construction costs estimated at $10 million.
More than 2,300 farm members of the Minnesota Soybean Processors committed more than $31 million to the project during an 18-month fund-raising period.
Rock County has about 180 investors in the plant, according to Kellenberger.
In addition to investor support, new legislation gives the plant an even brighter future.
State law now requires a portion of diesel fuel sold in Minnesota to contain biodiesel by 2005. Minnesota is the first state to mandate the use of biodiesel.
"We are pleased with the support we have received," Kirchner said. "We have a strong equity base to enter the soybean processing industry. Once the MNSP Board has the opportunity to analyze the financial feasibility of the biodiesel refinery, we will decide if MNSP will want to raise more equity."
If a refinery were constructed it would use only one-third of the plant's soybean oil capacity per year, according to Kellenberger. Soybean meal processed at the plant would be sold locally to feed hogs.
Biodiesel can be made from vegetable oils, animal tallow or waste oils from restaurants.
Farmers regard biodiesel as an effective way to reduce the national glut in the soybean market.
An Agriculture Department study estimated biodiesel production would create 1,128 to 2,798 jobs and increase demand for MinnesotaÕs soybean crops by 3 to 7 percent per year.
"Now that the legislation has passed we will review and update our financial analysis including plant size, capital investment and profitability," said MNSP CEO Rodney Christiansen in a press release.
"Biodiesel has been a part of the long-term strategy for MNSP investment in Minnesota. "MNSP's environmental permit applications included plans for soydiesel production."
The Minnesota Soybean Processors unanimously approved building the biodiesel refinery, in addition to the soybean crushing plant, at their first annual membership meeting in Windom on April 2.
A feasibility study on the refinery will be complete in about a month.