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.