Claremont, Minnesota - Al-Corn Clean Fuel, a farmer-owned ethanol production cooperative, has announced plans for a modernization and expansion project at their ethanol facility in Claremont, MN.

The project will make Al-Corn Clean Fuel more profitable for members and allow the cooperative to modernize its grain facility, add rail capacity, lower its greenhouse gas score, and drive down the cost of production.

"I am very excited about new investment in agricultural processing facilities in southern Minnesota" said Senator Dan Sparks, Chairman of the Senate Jobs, Agriculture and Rural Development Committee. "I know the Claremont ethanol plant was one of the first plants built in Minnesota and has been a huge financial success. I congratulate the plant and wish it future success."

Representative Rod Hamilton, Chairman of the House Agriculture Finance Committee, added, "Agriculture is the backbone of Minnesota's economy, and the expansion of Al-Corn is a testament to the importance of corn growers to our state. Through more job opportunities as well as an increased demand for corn and ethanol, the modernization of this plant is welcome news for all of us who value agriculture in southern Minnesota."

With facilities expanding throughout the renewable fuels sector, margins continue to tighten. Those facilities that are expanding and reducing cost are primarily those that are newer, larger, and already more efficient in terms of operating costs. This puts tremendous pressure on older, smaller, less efficient plants.

The expansion and modernization project will make Al-Corn Clean Fuel more competitive, thereby allowing the member-owned cooperative to continue operating for the long term.

"This is a huge project for our area, and we are excited to see the growth and economic impact it will have" said Jennifer Libby, President and CEO of Owatonna Area Chamber of Commerce. "We are excited for our member company, Al-Corn Clean Fuel, and for all our local communities that will benefit as a result."

Senator David Senjem added "I am excited to learn of Al-Corn’s decision to expand and become one of Minnesota’s largest ethanol producers" said Senator David Senjem. "Expansion means more jobs, more markets, and more economic vitality for our area of the state".

"Al-Corn Clean Fuel is a valuable asset to the farmers and the general economy of my district" said Senator Vicki Jensen. "This expansion and modernization investment ensures we can stay competitive in the value added agricultural market ethanol has been to Minnesota."

Construction is scheduled to begin in 2016, with completion in late 2017.