Ithaca Ethanol

[Shorthaul]

A few weeks ago, while driving along 127, I noticed the site of a planned ethanol plant in Ithaca,MI, along the GLC. It looks like a small yard was built there, with the obvious intentions of supporting this plant. The site looks about half finished, with about 4-5 silos and some small buildings. What happened here? Was the project cancelled of postponed? Will construction resume soon? I need answers, people

[~Z~]

A few weeks ago, while driving along 127, I noticed the site of a planned ethanol plant in Ithaca,MI, along the GLC. It looks like a small yard was built there, with the obvious intentions of supporting this plant. The site looks about half finished, with about 4-5 silos and some small buildings. What happened here? Was the project cancelled of postponed? Will construction resume soon? I need answers, people

Quick search in the search bar in the upper right corner, searched for Ithaca, and has these two threads..appears to be cancelled.

viewtopic.php?f=3&t=13715&p=98237&hilit=ithaca#p98237

viewtopic.php?f=3&t=12118&p=81099&hilit=ithaca#p81099

[Shorthaul]

Quick search in the search bar in the upper right corner, searched for Ithaca, and has these two threads..appears to be cancelled.

viewtopic.php?f=3&t=13715&p=98237&hilit=ithaca#p98237

viewtopic.php?f=3&t=12118&p=81099&hilit=ithaca#p81099

Ok,Ok. I guess Mr. search bar is a freind after all.

[AARR]

According to the CEO of GLC he thinks it'll still open in the future. Diddo for the one in McBain. I hope he's right but it probably won't happen until gas sours above $3/gal which the current pres and administartion would love to see happen.

[Shorthaul]

According to the CEO of GLC he thinks it'll still open in the future. Diddo for the one in McBain. I hope he's right but it probably won't happen until gas sours above $3/gal which the current pres and administartion would love to see happen.

After all of the track work they did, he better pray it will open

[Raildudes dad]

After all of the track work they did, he better pray it will open

???????????

[JDavis21835]

According to the CEO of GLC he thinks it'll still open in the future. Diddo for the one in McBain. I hope he's right but it probably won't happen until gas sours above $3/gal which the current pres and administartion would love to see happen.

After all of the track work they did, he better pray it will open

Track work was done by the owner of the property, not the railroad. This project is to far along to not be finished. But with the banking issues we have had, the owners are finding it hard to find investment to finish. Gas prices being low also hurts.

[Shorthaul]

After all of the track work they did, he better pray it will open

???????????

Yeah. I better stop posting so late at night.

[penn central]

It was on Channel 25 news tonight a Flint television station that Zeeland Farm Services is starting construction next month on a 130 million dollar soybean processing plant at the site of a defunct ethanol plant in Ithaca creating 75 new jobs time to bump this thread. Good Good news. Hopefully this will result in inbound or outbound shipments for the GLC.

[AARR]

A satellite view shows a lot of track work was done. It looks like there's track on both sides of a creek but the connecting track over the creek is missing. Maybe I'm not seeing the satellite view correctly.

It was on Channel 25 news tonight a Flint television station that Zeeland Farm Services is starting construction next month on a 170 million dollar soybean processing plant at the site of a defunct ethanol plant in Ithaca creating 75 new jobs time to bump this thread. Good Good news. Hopefully this will result in inbound or outbound shipments for the GLC.

[Super Chief]

Your seeing it right Don. Every time we go by on an SRI trip everybody scratches their heads about that track. Rumor way back was that it was Chinese rail to boot. Couldn't figure out at ground level why the track just ended where it did but so did the money.

[hoborich]

Looks like four tracks there, and GLC has been storing grain cars there for several years, off season.

[KC]

Zeeland Farm Services news release:

http://www.zfsinc.com/wp-content/upload ... 4-2016.pdf

Kelly

[AARR]

So they're anticipating processing 40 million bushels annually. If even only a fraction of that (15-25%) goes by rail that would be in the 2000-3000 car per year range.

Zeeland Farm Services news release:

http://www.zfsinc.com/wp-content/upload ... 4-2016.pdf

Kelly

[Jetlink]

So they're anticipating processing 40 million bushels annually. If even only a fraction of that (15-25%) goes by rail that would be in the 2000-3000 car per year range.

Zeeland Farm Services news release:

http://www.zfsinc.com/wp-content/upload ... 4-2016.pdf

Kelly

Just to give some perspective. The ethanol plan in Woodbury on CSX grinds between 40,000 and 50, 000 bushels of corn a day. They have two scheduled shut downs every year lasting about 2 days each. Occasionally there are other outages but lets just say 360 days a year. The math at 40,000 a day is 14.4 Million bushels at 50,000 it is about 18.0 Million.

The corn all comes in on grain trucks.
The ethanol all goes out on tanker trucks.
The enzymes and yeast all comes in on trucks.
The DDGS all go out on trucks.
The Gasoline to de-nature the ethanol (to make it undrinkable and avoid alcohol distillers tax) all comes in on tankers.
The other occasional feed additives and inputs (think corn syrup, etc) all come in on trucks

Woodbury was built on a rail line to bring corn in in the event of a famine and to send loads out in the event local markets didn't develop. There are about 3 miles of rail in the plant that don't get used at all. They are all trucks. They are happy that way. They used rail occasionally for a few years but weren't happy with the pricing and level of service.

So this facility in Ithaca is going to handle at least twice as much commodity. Maybe they will use rail. But keep in mind a facility half it's size currently doesn't even though it was built to.

[AARR]

Good point, JL. I'm amazed at the very large businesses that do not use rail service (other than maybe intermodal) in MI. Even auto plants that at one time were a lock for rail service now ship nothing by rail. Maybe with coal on the downturn railroads will become more aggressive in going after some of the business they have lost.

So they're anticipating processing 40 million bushels annually. If even only a fraction of that (15-25%) goes by rail that would be in the 2000-3000 car per year range.

Zeeland Farm Services news release:

http://www.zfsinc.com/wp-content/upload ... 4-2016.pdf

Kelly

Just to give some perspective. The ethanol plan in Woodbury on CSX grinds between 40,000 and 50, 000 bushels of corn a day. They have two scheduled shut downs every year lasting about 2 days each. Occasionally there are other outages but lets just say 360 days a year. The math at 40,000 a day is 14.4 Million bushels at 50,000 it is about 18.0 Million.

The corn all comes in on grain trucks.
The ethanol all goes out on tanker trucks.
The enzymes and yeast all comes in on trucks.
The DDGS all go out on trucks.
The Gasoline to de-nature the ethanol (to make it undrinkable and avoid alcohol distillers tax) all comes in on tankers.
The other occasional feed additives and inputs (think corn syrup, etc) all come in on trucks

Woodbury was built on a rail line to bring corn in in the event of a famine and to send loads out in the event local markets didn't develop. There are about 3 miles of rail in the plant that don't get used at all. They are all trucks. They are happy that way. They used rail occasionally for a few years but weren't happy with the pricing and level of service.

So this facility in Ithaca is going to handle at least twice as much commodity. Maybe they will use rail. But keep in mind a facility half it's size currently doesn't even though it was built to.

[Raildudes dad]

Thanks for the good info Jetlink. The ZFS facility in Zeeland is all truck as well - no rail although the CSX line isn't too far away.

To be constructed on a 43.5 acre site in Ithaca, Mich., the new facility will initially include grain receiving and storage,soybean processing and feed ingredients transloading. It will be sized to meet the soy processing and soybean meal needs in Michigan for the next generation and beyond.

The quote is from the President of ZFS, bolding is by me. That say Michigan business. They might be able to do something like the MAC on the GLC but not if it involves another railroad.

I work with a company that gets product by rail. If they could do it, it would all arrive by truck:( If I don't babysit the transit, I'm not sure how they would get cars.

As for the gap at the creek, I'm guessing they were waiting for a DEQ permit and the project shut down before it was issued. Then, no need to finish it if they are not going to use rail.

[railroader and son]

When ZFS was looking to purchase land for this expansion Carson City was looked at,but Ithaca won out for a few reasons. Site work that was already completed on the site,freeway system,current rail network already there,and other factors. Will they use rail? Hard to say,but GLC will try there hardest I'm sure. CN,and the AA offer other interchange options so that may help. Carson City has been looked at over the year's by large potential rail users,but rebuilding about 6 miles of rail line has always been a swaying factor in those discussions. Some being more serious then other's,so we shall see what the next few year's bring for Ithaca and the GLC...

[Norm]

IMO, they should stop production of ethanol except for enough corn-squeezin's to keep Willie Nelson's voice raspy. Tale that nasty stuff out of our gasoline. It'll also help reduce the price of corn flakes.

[Jetlink]

But MTBE( Methyl tert-butyl ether) is being phased out due to environmental concerns. While technically still legal the EPA wants it gone as a fuel additive. About half of the states have already outlawed it. Tetraethyl lead is already illegal in basically the entire world. There needs to be something else to produce the octane readings needed to save your engine valves if you aren't going to use ethanol. That's one of the main reasons these ethanol plants came online. It was to provide the octane ratings needed with the phase out of MTBE. Blends with E10 are needed just to get your basic 87 octane. Ethanol has different properties than gasoline and traditional additives but it is a high octane fuel that burns very cleanly.

By the way I have a vehicle that happens to burns E85. I filled up for $1.09/gal yesterday at the ethanol plant in Woodbury. There is a retail pump there. True I will get 19 mpg instead of 21 mpg but I'm still money ahead on a cost per mile basis.