The failures of earlier agriculture projects in North Dakota have hurt efforts to raise money to build ethanol plants in the state, developers say.

"I think there is enough demand to build 10 ethanol plants in North Dakota," said Tom Rolfstad, Williston's economic development director. "But I think there is a backdrop of pessimism from investors who believe 'once bitten, twice shy.'"

While funding has not come as easily as anticipated, officials say they are moving forward with plans for three plants that would process corn into fuel in different regions of the state.

"People have been burned with other value-added agriculture projects," said Jocie Iszler, executive director of the North Dakota Corn Growers Association. "Those ventures were gone into with the best of entrepreneurial spirit, but most of them were first-time models. The difference with the ethanol industry is that it is a mature industry with proven business models and technology."

North Dakota has two ethanol plants, in Grafton and Walhalla. Others are being planned in Valley City, Williston and Richardton. Iszler said the new plants would use better technology and likely would be more profitable.

South Dakota faced similar hurdles finding funds to build ethanol plants until the late 1990s, Iszler said.

"They struggled to build one, and then once they did, within five years, they had 11 plants," she said. "Once we get one (new) plant, I think we'll be like South Dakota, but people have to have firsthand experience of success."

Frank Kirschenheiter, coordinator of the Richardton project, said Red Trail Energy LLC is nearing its equity goal to start building the $78 million plant. He said the project needs $25 million by Oct. 31 to get financing, and about $18 million has been raised. The project received a $25 million federal loan guarantee last week.

Backers of the plant extended the equity drive three times.

Kirschenheiter said Red Trail Energy has hired the Fargo-based marketing firm GL Ness to help raise the rest of the needed money.

"It's something we should have done early on," he said. He would not say how much the firm is being paid.

The money raised so far has come from more than 300 investors. Only North Dakotans can buy into the project, with a minimum investment of $10,000, Kirschenheiter said.

"We're targeting a specific group of well-heeled investors," he said. "North Dakota has more millionaires per capita than any other state. We hoping to get some of that wealth to move this project forward."

Investors in the proposed Valley City ethanol plant got their money back this summer, after a funding drive fell about $15 million short.

Dakota Renewable Fuels LLC board member Mike Clemens, a Wimbledon farmer, said about 100 North Dakotans had invested more than $3 million in the $46 million plant. The group extended its own deadline to raise investor capital three times.

Clemens said no one is giving up on the plant, and his group now hopes to raise money outside of North Dakota.

"We're exploring all possibilities," he said.

Vancouver, Wash.-based Makad Corp. is planning a 17 million-gallon ethanol plant in Williston.

"We're still moving forward and we're still very excited about the project," company spokeswoman Tawni Camarillo said. She would not discuss details.

Makad does not have all of its financing secured, Rolfstad said. The company is pursuing funding from several sources, unlike the proposed plants in Valley City and Richardton, which have relied solely on funding within the state, he said.