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Biofuel producer hit with $176,000 fine for pollution offences

Iowa has handed a $176,750 fine to biofuels producer Lincolnway Energy for pollution offences at its ethanol plant in Nevada, Iowa.

The fine was handed out by a District Court in Story County yesterday, concluding a civil lawsuit brought by the Iowa Department of Natural Resources.

The suit accused the company of emitting air pollutants including particulates and nitrogen oxides above permitted limits on “numerous occasions” from December 2006 to December 2008.

The emissions came from the coal power plant at the company’s ethanol plant, which produces 55 million gallons of ethanol from local corn each year.

Lincolnway cooperated to resolve the issues and correct the situations” - Iowa Attorney General Tom Miller

The company was also found to have failed to carry out stack tests in 2007 to determine whether it was complying with its permitted air pollution limits.

Lincolnway Energy, which has been producing ethanol at its facility in central Iowa since May 2006, was also alleged to have discharged wastewater into a nearby creek in 2006-7 that had excessive levels of iron, solids and residual chlorine.

Corrected

The Department of Natural Resources had been pursuing Lincolnway Energy since late 2007.

However, the problems have since been corrected according to the State Attorney General’s Office, and Lincolnway has paid its fine.

“We alleged numerous violations,” said Attorney General Tom Miller. “Lincolnway cooperated to resolve the issues and correct the situations.”

The ethanol producer has now applied for revised air emission permits for its facility, but has warned investors it is not guaranteed to secure the permits.

The company is currently working to develop a carbon dioxide emissions capture system so that the waste gas can be packaged up for use as a refrigerant in the meat packing industry.

Lincolnway Energy ethanol is marketed by Green Plains Trading Group, part of Green Plains Renewable Energy.