blogs.desmoinesregister.com/dmr/index.php/2009/09/09/power-fund-board-approves-bioammonia-plant-loan/

The Board of the Iowa Power Fund has approved a $2.5 million loan to SynGest of Menlo Park, Calif., for construction and operation of a bioammonia plant to be built next year near Menlo.

The final terms of the deal are subject to negotiations. SynGest chief executive officer Jack Oswald said Wednesday “the terms will have a repayment provision because we asked for one. We appreciate the assistance, and when we are able to do so, we will want to replenish the ipf funds to make them available to another worthy project that will be good for Iowa.”

The Power Fund money will be added to $2 million loan from the Iowa Department of Economic Development. SynGest has a request in for a $50 million grant from the U.S. Department of Energy.

SynGest has hired Weitz Construction Co. of Des Moines to build the $105 million plant. Groundbreaking is expected next spring. The plant will be located adjacent to the Hawkeye Renewables Ethanol plant east of Menlo.

SynGest also is working with Heartland Coop of West Des Moines, which operates 48 grain elevators in Iowa, on possible sales and distribution ventures.

The SynGest plant would be the nation’s first facility to make ammonia from corncobs. Most nitrogen ammonia is made from a process using natural gas. The plant will employ about 45 permanent workers. Construction is expected to generate up to 500 jobs.