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N.D. (NewsDakota.com) – Midwest AgEnergy Group announced today that it is moving forward with plans to build the Dakota Spirit AgEnergy Bio-refinery that will produce ethanol, distillers grains and fuel-grade corn oil at the Spiritwood Energy Park near Jamestown, N.D.

“Today’s groundbreaking marks a significant milestone for the 65 million gallon-per-year bio-refinery, and it represents a result achieved by the combined efforts of many stakeholders, Dakota Spirit AgEnergy creates value at the intersection between agriculture and energy,” said Greg Ridderbusch, President of Midwest AgEnergy Group.

The energy industry will benefit with a new supply of 65 million gallons of renewable fuel. The ethanol product from Dakota Spirit AgEnergy is certified as renewable under the country’s Renewable Fuel Standard 2 administered by the U.S. Environmental Protection Agency (EPA). Another 6,900 tons of fuel-grade corn oil will be marketed for use in making products like bio-diesel.

Area farmers will also benefit. Dakota Spirit AgEnergy is located in a major corn production area, and will purchase 23 million bushels of corn annually. Local agriculture producers will also have access to 198,000 tons of distillers grains to feed the livestock industry. “Modern bio-refineries like Dakota Spirit economically produce renewable fuel and high value feed products,” said Jeff Zueger, Chief Operating Officer of Midwest AgEnergy Group.

The ethanol bio-refinery will be co-located next to Great River Energy’s Spiritwood Station, a combined heat and power plant. Spiritwood Station will provide process steam to the bio-refinery. This eliminates the need for Dakota Spirit AgEnergy to build and operate a boiler, which creates a sustainable long-term advantage that is important in a commodity market.

The total cost of the project is $155 million. Near term activities include engineering and site preparation, with full construction operations underway this fall. Commercial operation is scheduled for the first quarter of 2015.

The ethanol bio-refinery will have a significant impact on the local economy through the creation of 36 direct jobs and 275 trade and construction jobs during the 18-month construction period. The team of Karges-Faulconbridge, Inc. and McGough Construction, respectively, will be the design and build contractors.