January 21, 2003
Contact: Kara Keeton, Communications Director
Governor’s Office of Agricultural Policy
404 Ann Street, Frankfort
(502) 564-4627

Kentucky Agricultural Development Board presents $9,500,000 to Commonwealth Agri-Energy, LLC Ethanol Plant

The Kentucky Agricultural Development Board, chaired by Governor Paul Patton, will delivered a check in the amount of $9,500,000 in support of Commonwealth Agri-Energy Ethanol Plant at 2:00 p.m. today at the Christian County Fairgrounds/Convention Center in Hopkinsville. Governor Paul Patton, Commissioner Billy Ray Smith and John-Mark Hack, Executive Director of the Agricultural Development Board will present the grants funds to Commonwealth Agri-Energy.

Hopkinsville Elevator Co., Inc. is a 2,300 member grain cooperative headquartered in Christian County. Started in 1968, the cooperative also has elevators located in Todd, Warren, and Logan Counties, as well as a barge loading facility in Clarksville, Tennessee. The cooperative has formed Commonwealth Agri-Energy, LLC to undertake the development of a 20 million gallon-per-year fuel ethanol processing plant in Hopkinsville, at a cost of approximately $32,800,000. When in operation, the ethanol plant will process approximately 7 million bushels of wheat and corn grown within the Hopkinsville area. Annually the plant will produce 20 million gallons of fuel grade ethanol plus another 58,400 tons of distiller’s dry grains (DDGS).

The Kentucky Corn Growers Association, KyCGA, through its for profit subsidiary corporation KY Corn Plus, Inc, is investing $1 million in the plant to have 6% ownership. The objective of KyCGA’s investment and ownership is to add value to the 7.3 million bushels of corn that will be utilized. KyCGA will focus on making the plant a success through continued fuel ethanol and DDGS market development and promotion.

Kentucky has made a historic effort to diversify away from tobacco production while revitalizing the farm economy by investing 50% of Kentucky's Master Settlement Agreement into the Kentucky Agricultural Development Fund. To date Kentucky has invested over $100 million to an array of county, regional, and state projects designed to increase net farm income and create sustainable new farm-based business enterprises. The Commonwealth Agri-Energy ethanol plant represents just one of the over 850 projects that have been funded through Agricultural Development Fund, since the inception of the program in January 2001.

For more information regarding this project contact:
Kentucky Corn Promotion Council Contact: Todd Barlow (502) 243-4150
Governor’s Office of Agricultural Policy at (502) 564-4627
Commonwealth Agri-Energy: Jimmy Doss (270) 886-5191

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