03/14/05 Company seeks straw contracts

Ray Hess and agents for Idaho Biorefinery say they are finding farmers willing to contract straw to the company that may produce ethanol in eastern Idaho. It's the high quality straw that has Iogen, Inc of Canada and Shell Oil interested in building a 250 million-dollar ethanol plant. Hess says farmers are offered a couple of options for their wind row straw. HESS "There's a set price on five years and then there's a price based on West Texas crude that float up an down with the price of crude oil. That's a ten-year contract. Baling and the transportation is over and above that windrow price." Before a decision is made this summer on the plant's location, the contracts for at least a half a million tons of straw have to be secured with eastern Idaho farmers. HESS "From Tremonton, Utah to Ashton in the north, go out as far as Arco and Raft River and over to Driggs. And this is a deal that will pay you anywhere from ten, 20, maybe 30 dollars an acre." The proposed ethanol plant has nothing to do with the recent move to try to require a ten- percent ethanol blend in Idaho gasoline. Shell wants to sell the ethanol on the West Coast. Voice of Idaho Agriculture Bill Scott