Associated Press Writer

By DAVE KOLPACKBy DAVE KOLPACK

JAMESTOWN - A $350 million Stutsman County energy park is being planned around North Dakota barley, corn and coal.

Plans were announced Monday for a 100 million gallon ethanol plant along with an expansion of Cargill Inc.'s malt processing plant in Spiritwood, about 10 miles east of Jamestown, and a steam plant that burns coal.

Great River Energy, Cargill and the Newman Group of Jamestown are partners in the project, called the Spiritwood Industrial Park. Gov. John Hoeven said it will bring about 100 jobs to the area.

The Newman Group will build the ethanol plant, which will use about 35 million bushels of corn a year. Great River Energy plans to build the power plant.

Energy parks likely will become more common, said David Saggau, the president and chief executive officer of Elk River, Minn.-based Great River Energy.

"By sharing risks and sharing benefits, we can accomplish a lot more," he said. "I think this is the first of many such relationships we're going to see."

Jamestown businessman Harold Newman said the partnership with Great River Energy and Cargill, along with state and local support, will make the project one of the most efficient in the country.

"They bellied up to the bar, put their nose to the grindstone," he said of the partners.

State Sen. Duaine Espegard, R-Grand Forks, a member of the Newman Group, praised Newman's efforts as well.

"The most important thing about entrepreneurs is that they get something done in the end," Espegard said.

Minnetonka, Minn.-based Cargill plans a 30 percent expansion of its Spiritwood plant next year, increasing the amount of barley it buys from 20 million bushels a year to 28 million bushels a year. Malting barley is used in beer.

John Geisler, a Cargill vice president, said the partnership is a major step toward improving the economy.

"As in most collaborations, we've had some bumps along the way, but we're confident that this one has a real chance to succeed," he said.

Saggau promised the new power plant will have environmental safeguards. It will include a new feature that controls mercury pollution, company officials said.

"We're going to build a clean power plant. That is our commitment to this community," Saggau said.

Great River also operates two electric power plants in western North Dakota and is building an ethanol plant near Underwood.

Henry Hanson, chairman of the board of Great River Energy and a southwest Minnesota farmer, said the project should cut down on transportation costs for producers.

"There's no need to pay 50 cents a bushel to train that corn to Chicago. You can save that 50 cents and maybe even get a little premium from Harold and his group by using it right here in North Dakota," he said.