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Patriot plant fuels the future with biodiesel expansion

Filling up as the gas pump on Thursday, Richard McKibbon is a big fan of E85. “It’s a product going out of our cornfields that really produces,̶...

Filling up as the gas pump on Thursday, Richard McKibbon is a big fan of E85.

"It's a product going out of our cornfields that really produces," he said.

But these days, there isn't much price difference at the pump.  At this station in Annawan, Illinois, E85 costs just a dime less than a gallon of regular.

AAA's Gas Gauge shows Quad Cities gas prices averaging .36 less per gallon than a year ago.  Prices are expected to drop another .15-.20 per gallon by New Year's Day.

But what's good for drivers might not be great for farm-based industry.

"It's hard on all aspects of what goes into your gas tank, including ethanol," said Sen. Charles Grassley, (R) Iowa.

That's not stopping Patriot Renewable Fuels from expanding its plant.

"You have the largest corn crop in history," said Judd Hulting, commodities manager.  "You have everybody running."

The Annawan, Illinois, company is preparing for the future by building a $10-million biodiesel plant.

"Whether it's the railroad, truck drivers or farm applications, we think there will be a lot of demand for biodiesel," Hulting said.

When the plant opens in early 2015, it will double its use of 40 million bushels of corn each year.  Patriot will make both biodiesel fuel and ethanol, 24-7.

"Ethanol is still the cheapest octane around," he said.

While the expansion comes at a challenging time for the biofuels industry, this location and resources make it a timely addition.

For Hulting, it's all about preparing for the second generation use of these plants.

"How can we take what we've built and continue to add, grow and create more jobs in Annawan," he said.

Patriot plans to add about 10 new jobs in 2015 to its 60-strong workforce.

Back at the pump, it makes sense to McKibbon, even with a narrowing price gap.

"It's very beneficial financially to the farmer," he concluded.

At the Patriot plant, they're working to fuel the future.

 

 

 

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