June 13

North Prairie Productions LLC has halted construction of a 45-million-gallon-per-year biodiesel facility near Evansville, Wis., because of increasing raw material costs.

Investors had hoped to take advantage of southern Wisconsin´s growing soybean production, but the price for the commodity has made the project economically unfeasible, the company said. The board voted to terminate the project when it determined the price increases outstripped the company´s ability produce and market biodiesel and make a profit.

North Prairie´s initial estimate to build the facility was $46 million. Soybean and other price increases would have required another $30 million. The company anticipates returning 50 percent of investors´ equity.

"While we regret the impact this decision may have, we believe it is in the best long-term interests of the many investors, agricultural producers, suppliers and communities North Prairie was intended to serve," the company said.

Contact Waste News reporter Joe Truini at (330) 865-6166 or jtruini@crain.com

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