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Red Trail Energy fuels North Dakota’s
ethanol industry
by Luann Dart
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| Swaddled in a blanket of snow, a field
of corn stubble shepherds a steady stream of semitrucks to
the entrance of Red Trail Energy near Richardton. (photo
by J.C. Balcom) |
Swaddled in a blanket of snow, a field of corn stubble shepherds a steady
stream of semitrucks to the entrance of Red Trail Energy near Richardton. Just
beyond the stubble, the steel and concrete complex sprouts from the prairie
as part of the state’s emerging ethanol industry.
Eight-hundred North Dakota shareholders raised more than $36 million
to build Red Trail Energy, which produced its first gallon of ethanol
Jan. 1, 2007. Just over a year later, the plant is operating around the
clock, producing more than 50 million gallons of ethanol from 20 million
bushels of corn per year.
“There was a group of individuals right out of the community that said
we’ve got a desire and a goal to build an ethanol plant right here in
western North Dakota,” explains Mick Miller, president of Red Trail Energy.
That local grass-roots effort germinated into a reality which 29-year-old
Miller describes with enthusiasm.
“It’s been a joyful pleasure to have a plant in western North Dakota
and reap the benefits of a supporting community, supporting investors, supporting
government agencies, our Legislature, our politicians, our governor; it’s
been great,” he says. “We’re happy to be out here and have
this plant running and be part of the state and producing a good renewable
product that provides an economic benefit for many people.”
Changing the landscape
Red Trail Energy is altering the landscape of the Richardton area
and beyond as more farmers plant corn intended for ethanol.
Overseen by a seven-member board of directors, the plant is purchasing
about 95 percent of its corn in North Dakota.
“Our objective is to build a farmer/plant relationship direct so we can
buy as much corn from the farmer as possible,” Miller says.
During its bustling winter season, the plant welcomes 150 trucks
a day, all loaded with golden kernels of corn.
Mike Appert, Hazelton, who serves as chairman of the Red Trail
Energy board of directors, has quadrupled his corn production this
past year. Since the 2007 harvest, he’s hauled about 150,000 bushels
of corn to the ethanol plant.
“It’s helped the corn market,” Appert says, and provided
another feed source for cattle producers.
Before Red Trail Energy sprang to life, Cal Hoff, who farms four
miles north of Richardton, sold about 25,000 bushels of corn in a 25-30
mile radius as feed for local livestock. Hoff, a member of Roughrider
Electric Cooperative, has now doubled his corn acreage, selling close
to 50,000 bushels of corn to Red Trail Energy this past year.
“We would have planted corn with or without the plant; it’s part
of our rotation with our no-till farming,” he says. “We have expanded
our corn production probably because of the plant.”
The plant has impacted the Hoff farm in other ways. By the end
of January, he hadn’t fed a single bale of hay to his cattle. Instead,
the herd has been grazing the harvested cornfields. He’s also renting
the cropland to other farmers for livestock grazing.
“That’s been a real advantage as far as feed goes,” he says.
Red Trail Energy has purchased corn from about 450 different producers,
according to Commodities Manager Clark Holzwarth, who is responsible
for keeping the hungry plant fed with a steady diet of corn. Farmers
can telephone or e-mail him for current prices, and then select from
a variety of contract options to sell corn at an established price. Delivery
times are crucial, Holzwarth says. The plant has storage for 1.7 million
bushels of corn onsite, which will keep the plant operating for 30 days.
“We tend to have a very competitive bid for our corn because we have
to draw enough corn to keep this plant running,” Miller says. “We’ve
definitely seen more corn acres going out here and we’re going to see
more and more especially with genetics and the corn breeds they’re coming
out with.”
“It’s provided a better market for our crop and an opportunity
to grow corn at a level that we probably wouldn’t have had,” Hoff
says.
Processing corn into ethanol
Inside Red Trail Energy, operators carefully monitor a fermentation
process that transforms the corn into ethanol.
The ethanol is sold to a third-party marketer, Renewable Products
Marketing Group, and most is sold in the Pacific Northwest, shipped via
railroad.
The plant also sells a co-product of the ethanol production process,
distillers grains, which is sold as livestock feed. The plant produces
about 170,000 tons of dry distillers grain or 400,000 tons of modified
distillers grain per year. Modified distillers grain still contains about
50 percent moisture and has a shorter shelf life, so it is mostly marketed
locally to ranchers for livestock feed.
“(The distillers grain) seems to work well in the rations out here. They
really, really adapted to it well and it’s actually become very popular.
There’s more of a demand than we can supply,” Miller says.
The fermentation process takes about 60 hours, explains Plant Manager
Edward Thomas. Before the ethanol is shipped, it is blended with about
5 percent gasoline. The buyer will blend it with different gasolines
to create either a 10 percent ethanol blend for gas pumps or E85, which
is an 85 percent blend.
While Red Trail Energy is not located in the heart of corn country,
it is located next to an infrastructure and natural resources which keep
its operating costs low.
As a coal-powered ethanol plant, Red Trail Energy uses Montana
coal as a cheaper energy source. “That is one of the major factors
that offset this plant from the rest of the plants in the U.S. There’s
only a handful that are coal-fired,” Miller says.
“There’s a huge savings in burning a solid fuel versus natural
gas right now. Although the plants do cost more upfront, long term, there’s
beneficial savings and that savings also offsets our additional transportation
costs to get our corn out here. The plant is built closer to coal than it is
to corn.”
Electricity is provided by Roughrider Electric Cooperative. “The
15 percent growth in kilowatt-hour sales during the past year for Roughrider
Electric Cooperative is mainly due to commercial loads like Red Trail
Energy. ... We are looking forward to a long relationship with Red Trail Energy
and the economic benefits they bring to our cooperative,” says
Clayton Hoffman, co-manager of Roughrider Electric.
Red Trail Energy is also strategically located to I-94 and a main
line of Burlington Northern Sante Fe Railway.
“Logistically, we have really good truck and rail access in and out of
the plant,” Miller says.
And through the Southwest Water Authority, the plant has an ample
water supply, including raw water from Lake Sakakawea which is used for
processing. The plant uses about three gallons of water to produce one
gallon of ethanol. Wastewater is recovered inside the plant and recycled.
“Our fermentation process seems to act very consistent using surface
water .. than conventional plants that have drilled wells,” Miller says.
As a second generation processing facility, Red Trail Energy is
more efficient than plants of the past, using less energy to create a
gallon of ethanol than older plants.
Making an impact
With 41 employees and an annual payroll of $1.9 million, Red Trail
Energy has impacted the local economy in other ways.
Miller and Thomas, both 29 years old, hold degrees in process
plant technology from Bismarck State College. Both were working in
Minnesota before returning “home” to take lead roles at
Red Trail Energy.
They are typical of Red Trail Energy, where the average employee
is under 30 years old, most hold degrees and many returned to their home
state of North Dakota after having worked out of state.
“I think that’s huge for economic development ... it provides educated,
young people to take part in community activities,” Miller says. “I
think the age of our employees is a great asset.”
“It’s had a pretty large economic impact on North Dakota,” says
Appert, a member of KEM Electric Cooperative.
As the plant delves into its second year of production, its main
challenge is increasing consumer awareness, Miller says, “so they
understand the economic benefits and the value of a renewable fuel
such as ethanol.”
“Ethanol’s not the answer, it’s not going to eliminate gasoline
or crude oil or importing crude from other countries .. it’s just part
of the solution,” he says. “I think what ethanol has done is really
opened some eyes saying we need to build renewable fuel industry, whether it’s
wind, ethanol or biodiesel.”
Luann Dart is a freelance writer and editor who lives
near Elgin.
Farmers may contact Red Trail Energy at:
Red Trail Energy
PO Box 11
Richardton, ND 58652
Call the grains line at:
(701) 974-3880
Or e-mail Commodities Manager Clark Holzwarth at:
clark@redtrailenergy.com
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