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Thursday, May 5, 2016

Storm Lake biodiesel plant still on hold, in search on investors

Tuesday, November 20, 2007

Raccoon Valley BioDiesel's trailer still optimistically stands on the site where the alternative fuel plant is proposed at the Highway 71 edge of Storm Lake, but according to President Dale Arends, there has been little change to the status of the project since its equity drive turned to a search for institutional investors.

A local investor's group came together more than two years ago to begin planning the $84 million development.

"We have been getting some more interest as the year comes to an end," Arends said. "If we had the group that signed and gives the 'go' to move forward it would spring by the earliest when we start (building)."

The business plan has had a positive response from potential investors, "but you never know if they mean that or if they said it just to make you feel good - until the pen signs the line," Arends said.

The core group of investors, who originally wanted to keep all the investments local, hired an investment banker to help when it became necessary to search for larger investors. General manager Joe Sandor has been helping with meetings for the groups that are interested in investing in biodiesel.

"He has a knowledge and understanding about management that makes a valuable asset," Arends said about the General Manager.

According to Arends, Raccoon Valley isn't the only group that is struggling, but he believes that the their business plan will get them started.

"Economically it has been difficult for the biodiesel industry," Arends said. "The prices of materials have risen across the board in the alternative fuel industry but once we get the investors we will be good go with our plan."

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