Ag Processing Inc. to Build $90 Million Vegetable Oil Refinery
Omaha-based Ag Processing Inc. (AGP), the world’s largest soybean processor, is investing $90 million to construct a new vegetable oil refinery near Sergeant Bluff, Iowa. Construction is scheduled to begin later in 2015, and completion is expected in the spring of 2017.
The new complex will be constructed on the same 85 acre site where AGP currently operates a biodiesel plant and a soybean processing plant that converts soybeans into high performance soy protein for the dairy industry. The new refinery will include crude soybean oil filtration, degumming, refining, bleaching, and deodorizing processes, and will have a new well system and water cooling tower.
Costs for the project include $71.5 million for machinery and equipment, $2.5 million for site preparation, and $14.5 million for construction. AGP will benefit from state and local tax incentives including an exemption of $2.1 million in county property taxes through 2024. The state Economic Development Authority will also provide $152,000 in forgivable or interest-free loans, and $800,000 in tax credits.
AGP is owned by 174 agricultural cooperatives representing 250,000 farmers across 12 U.S. states and Canada.