Proposed Iowa bioammonia plant receives loan

The Iowa Power Fund board of directors has approved a two-point-five million dollar loan to Syngest Incorporated for construction of a bioammonia plant near Menlo, Iowa.  

Once operational, the Syngest plant would be the nation’s first facility to make ammonia from corncobs.  Groundbreaking is expected in the spring of 2010.  

In addition to the Power Fund loan, Syngest has also received a two million dollar loan from the Iowa Department of Economic Development.  The company also plans to ask the U.S. Department of Energy for a 50 million dollar grant. 

Syngest recently signed a letter of intent with Heartland Co-op of West Des Moines to explore a partnership in the venture.  Heartland, which has 48 grain elevators, mostly in central Iowa, would be an equity and retail sales partner.

Syngest to discuss biomass-to-ammonia plans

Syngest, the San-Francisco-based firm that proposes to make anhydrous ammonia fuel and fertilizer from corn cobs, will hold two public informational meetings in Guthrie County, Iowa this week. Those meetings will be held Tuesday night at the Guthrie Center Activities Center and Wednesday evening at the Menlo Community Building.  Both start at 7:00 p.m.

Syngest CEO Jack Oswald says the company is proceeding with plans for a biomass-to-ammonia plant near Menlo, 45 miles west of Des Moines.  “We’ve already begun the process of pre-planning for construction,” Oswald says. “If things go according to the plan, we’ll be in the first stages of site preparation this fall and begin hard construction at the first thaw of 2010.”

Audio: Jack Oswald (9 min. MP3)

Oswald says the Menlo plant could be the first of many such plants in the Midwest.