USDA loans $10 million for biodiesel plant

Maple River Energy LLC, a proposed biodiesel plant in Galva, [Iowa], has received a $10 million loan from the U.S. Department of Agriculture’s Rural Development agency.

Delayne Johnson, Maple River’s general manager, said the plant will use 3 million bushels of soybeans a year to produce 5 million gallons of biodiesel fuel and 75,000 tons of soybean meal. The plant will be located next to the Quad County Corn Processors ethanol plant near Galva.

Iowa has 10 biodiesel plants and five more planned. High soybean prices have dampened the industry, however. A new study by Iowa State University suggests that the industry won’t grow substantially unless the government requires its use or adds more subsidies.

Des Moines Register