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4/20/2007



Rail News: Rail Industry Trends

Ethanol plants to open next year on three railroads' lines



Two Class Is and one short line will be moving more ethanol on their lines next year. Two ethanol producers recently announced plans to build rail-served plants in Canada and the United States by late 2008.

Riverstone Holdings, The Carlyle Group and Dominion Energy Services LLC. will construct a 100-million-gallon-capacity ethanol plant in Innisfail, Alberta. To enter the construction phase in summer and be completed in fall 2008, the plant will be part of a biofuels refinery complex, and move ethanol and biodiesel via Canadian Pacific Railway.

“The rail access and close proximity to large quantities of feedstock and a skilled local workforce made Innisfail an ideal location,” said Riverstone Holdings Managing Director Stephen Schaefer in a prepared statement.

Meanwhile, VeraSun Energy Corp. announced plans to build a 110-million-gallon-capacity ethanol plant in Reynolds, Ind., that will be served by CSX Transportation and the Toledo, Peoria & Western Railway.

To be completed in fourth-quarter 2008, the plant will process about 39 million bushels of corn to produce 110 million gallons of ethanol and 350,000 tons of distillers grains annually.

The Reynolds facility will be VeraSun Energy’s sixth ethanol plant. The company operates Iowa, Chicago & Eastern Railroad Corp. (IC&E)-served plants in Aurora, S.D., and Fort Dodge, Iowa; recently opened an IC&E-served facility in Charles City, Iowa; and is building a plant in Hartley, Iowa, that will be served by the IC&E and a facility in Welcome, Minn., that will be served by the regional and Union Pacific Railroad. The new plants are scheduled to open in first-quarter 2008.


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