GNS Project Announcement
SME employees (from left) Roger White, Frank Algarin, and Gary Ralls with totes of alcohol destined to become hand sanitizer.
GNS PROJECT ANNOUNCEMENT
We wish you all the best in these extraordinary times and hope the upcoming harvest is bountiful and safe for all our grower members!
While the pandemic and resulting economic chaos created a significant disruption to our business, the increased demand for alcohol to be used in sanitizers was a great opportunity!
Show Me Ethanol began providing alcohol for use in hand sanitizer in late March. In total, we have sold over 1 million gallons of alcohol for use in hand sanitizer. These sales have indicated there is a business opportunity for us in the non-fuel alcohol industry.
We completed a feasibility study and in June proposed a project to the Board of Managers that will allow us to supply this market long term. The Board approved this project pending completion of a restructured Chapter 100 Bond plan from Carroll County. On 09/18/2020, the Carroll County Commissioners approved our restricted Chapter 100 Bonds.
These bonds provide Show Me Ethanol property tax abatement for 20 years, in return for a payment in lieu of taxes. This payment is distributed to the effected taxing districts, including the local schools. We appreciate the continued support from Carroll County!
This new business opportunity will diversify our revenue and reduce our dependance on the fuel ethanol market. The company will still be capable of producing a total of 73 Million gallons/year of alcohol from nearly 25 million bushels of corn. The project will not impact our Distillers Grains or Corn Oil marketing. We have targeted May 2021 to start up the new distillation system. The project will cost approximately $18 Million, which will be paid for with existing retained earnings and use of credit with our lender, AgCountry Farm Credit Services.
The state of Missouri has approved up to $1.5 million dollars in member tax credits through the MASBDA program that will likely be issued in 2021. We have also received a $300,000 grant from the Show Me Strong PPE Retooling Grant Program.
The Show Me Ethanol Team is excited to take on the challenges and opportunities this project presents. We thank you for your investment in the facility and continued support.