Minnesota Ethanol Plant Development

NEW YORK - Sep 15/05 - SNS -- Biofuel Solutions is in the advanced planning stages for construction of a 110 million-gallon-per-year ethanol plant to be located in Fairmont, Minnesota.

The company would have, pending appropriate approvals, an exclusive relationship with Cargill to provide certain services to the plant. The facility would be co-located adjacent to the local Cargill Ag Horizons grain elevator.

The plant would source corn from Cargill's elevator and work with local elevators to procure the 41 million bushels of corn needed to meet production requirements. In addition to producing ethanol, the plant is expected to produce more than 375,000 tons of dry distiller grain for animal feed annually.

Biofuel Solutions is currently evaluating the site and plans further investment in part based on the nearby railway and highway systems, including access to mainline rail, and strong community support. The City of Fairmont is working with Biofuel Solutions to confirm the proposed plant meets all required environmental ordinances, state and federal laws.

All environmental permits required for construction have been filed and are pending approval from the Minnesota Pollution Control Agency. Delta-T/TIC Alliance, which built the Corn Plus ethanol plant in nearby Winnebago, Minn., has been selected to build and provide technology for the facility. Biofuel Solutions expects to begin construction in the first quarter of 2006.