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Rail News: Rail Industry Trends

Alternative Energy Sources to build ethanol plant on UP mainline


In late 2008, Union Pacific Railroad might begin serving a new ethanol plant in Boone County, Iowa. Last week, Alternative Energy Sources Inc. (AENS) announced plans to build a 110 million-gallon-capacity facility between Ogden and Beaver in central Iowa adjacent to a UP mainline.

The railroad would move 100-car unit trains of ethanol and dried distiller grains for AENS, which expects to begin building the plant on a 625-acre site in six to nine months.

“The large footprint will … allow us to build significant rail infrastructure to accommodate the high-density Union Pacific mainline,” said AENS President and Chief Executive Officer Mark Beemer in a prepared statement.

The company plans to build additional ethanol plants in the Midwest, each designed to produce about 100 carloads weekly.