USDA sending $35 million to McCook ethanol plant

Officials from SW Energy LLC, Home Federal Savings Bank and the USD Rural Development agency gathered this morning at the ethanol plant site four miles west of McCook. The officials were here to inspect the site of SW Energy's planned $100 million facility, which is located near Frenchman Valley's grain storage facilities at Perry. The project received a major boost Monday when the USDA announced loan guarantees totaling $35 million for the project. Preliminary dirt work has already begun on the project, which is due for completion in the early part of 2008. The group includes, from left, Cliff Kumm and Karissa Hagedorn, representing USDA Rural Development; Jeffrey Buelow, representing SW Energy LLC, and Eric Oftedahl and Susan K. Colling, representing Home Federal Savings Bank of Minnesota. When completed, the ethanol plant initially will produce more than 60 million gallons of fuel grade alcohol per year. (Connie Jo Discoe/McCook Daily Gazette)

LINCOLN -- Nebraska State Director Scot Blehm of USDA Rural Development presented a $38 million ceremonial check to the citizens of Nebraska, onn Monday, including $35 million to get a McCook ethanol plant off the ground.

The check represents the USDA Rural Development energy dollars recently infused into the state that will support the renewable energy industry and promote energy conservation.

"USDA Rural Development is committed to carrying out the President's Advanced Energy Initiative and we are proud to have the programs available to assist," Blehm said. "I am very pleased with the awarding of $38 million to Nebraska as these funds will provide advancement in new energy opportunities and help reduce the consumption of energy as mandated in the Initiative."

Dollars injected into Nebraska's energy arena in Fiscal Year 2006 are comprised of a $10 million 9006 Renewable Energy Systems Guaranteed loan and a $25 million Business and Industry Guaranteed loan to S.W. Energy, LLC for the construction of an ethanol facility just outside of McCook, Neb. Additionally, $2.4 million in 9006 Renewable Energy and Energy Efficiency Improvements grants and a $300,000 Value-Added Producer grant were awarded to153 rural small businesses and agricultural producers to assist in areas of renewable energy resource development and energy efficiency improvements of existing systems.

USDA Rural Development's mission is to deliver programs in a way that will support increasing economic opportunity and improve the quality of life of rural residents. Rural Development provides investment and technical assistance to finance and foster growth in homeownership, business development, and critical community and technology infrastructure. For further information on rural programs contact the Nebraska State Office at (402) 437-5551 or one of Nebraska's USDA Rural Development field offices. You may also visit www.rurdev.usda.gov/ne.