Wednesday, July 19, 2006

Feel The Crush

North Prairie Productions and Landmark Co-op say they are working out the details of an agreement for placement of a bio-diesel production facility in Southern Wisconsin.

One factor which may influence site selection is the Wisconsin Soybean Association's Processing Facility Feasibility Study. This study is to determine the need and prospects for a soybean crushing facility in Wisconsin. Currently all of Wisconsin's soybeans have to be shipped out of state if they are going to be processed into oil and meal. A crushing facility near the biodiesel plant would shorten the supply chain for NPP's raw material.

From the North Prairie website:
In recognizing the impact it will have in creating a soy oil market, NPP deferred specific site selection for its plant until after its review of the WI Soybean
Growers Assn’s Processing Facility Feasibility Study. This report identified the area in Wisconsin that would be most viable for the location of a commercial soybean processing facility. Whereas many of our requirements need to be considered separate from this report, it is reasonable to assume that the proper site for a crush facility would also most likely service the needs of a biodiesel plant.
(emphasis mine)

This follows the message which was sent to the EDC at their meeting Tuesday night, that the report has been reviewed but not released. That NPP and Landmark are in talks at this stage of the game bodes well for the city.

For their part, the WSA isn't ready to release a completed report but it appears that enough preliminary data was collected and analyzed to satisfy those making a judgement regarding site selection. From their website comes the announcement of the study in February of this year. The entire report of state capacity and prospects is not due until sometime in 2007 so we won't see that until then. (Just sharing the expectation because I know there will be those who think the study is being hidden, when, in fact, it is simply not ready for release.)

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