Red Trail President Speaks up for Ethanol Production

September 03, 2018

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by Mikkel Pates (Forum News Service/Bismark Tribune) Now more than ever, farmers who believe in the future of ethanol need to speak up for it, says Gerald Bachmeier, president of the North Dakota Ethanol Producers Association.

Bachmeier, who also serves as chief executive officer of Red Trail Energy LLC, in Richardton, says there are several key policy goals in play:

• First is to ensure compliance and continuance to the Renewable Fuel Standard.

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• Second, the EPA should keep the current 15 billion gallon requirement for conventional biofuels like corn ethanol. Distributors need this to accelerate investments in the pumps and other infrastructure to get E15 (a 15 percent ethanol blend with petroleum) into the marketplace, and perhaps to E30 sometime in the future.

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• Third, the industry should help consumers learn the octane-enhancement benefits of ethanol.

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Red Trail Energy started production in January 2007 as the Renewable Fuel Standard came into its current status. Initially, Red Trail's capacity was 50 million gallons per year. Bachmeier, as a consultant, was part of the initial $100 million equity drive. He came back into management in 2010.

The company has 936 owners, about half of whom deliver corn to the plant. The plant ships out a unit train of 96 cars (2.7 million gallons) twice a month.

The plant is now debt-free. It has paid off $55 million in debt, has put $17 million into the facility and $25 million to owners in dividends.

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RPMG markets ethanol for 18 plants in North Dakota, South Dakota, Minnesota and Iowa. READ MORE